When it comes to navigating loans, it can take a frustrating amount of information and savvy to negotiate the process from start to finish. Whether you need support to buy a car, pay medical bills, finance your business, or for any other purpose, finding the right lender is the most important step. Unfortunately, there are lenders out there who take advantage of their ability to loan money. They ruthlessly drive borrowers out of income, compromise property ownership, and even force debtors to file for bankruptcy.
Predatory lenders are a continuing problem in the U.S., but there are those out there who want to hold these vicious creditors accountable. Behm Law Group, Ltd. is dedicated to providing counsel to those considering filing for bankruptcy in Owatonna, MN, and protection from predatory lenders.
As a graduate of Max Gardner’s Bankruptcy Boot Camp, Stephen Behm is committed to fighting predatory lenders and holding them accountable in defense of his clients. If you’re facing an aggressive creditor practicing the following common predatory practices, Behm Law Group, Ltd. can help protect you throughout your bankruptcy case.
Predatory Lender Practices
- Misrepresentation: Limited disclosure (or even false disclosure) of the terms of a loan including costs, time frames, risks, and any other fine print obligations is an immediate red flag of predatory lending.
- Inflation: Increasing the cost of loan documents, closing charges, and preparation fees is also a frequent practice of disreputable lenders. Adding in the cost of additional components like credit insurance can also mark an untrustworthy lender.
- Refinancing: Lenders that offer refinance loans based on home equity or offer refinancing on existing loans often push debtors to borrow more than they can pay off and impose higher interest rates and hidden fees. Additionally, refinanced mortgages from predatory lenders commonly impose balloon payments that are lower at first and quickly rise.
- Neighborhood targeting: Predatory lenders often target low-income neighborhoods, offering loans with higher interest rates for every debtor without regard to those individual debtors’ credit history, income, or otherwise ability to meet payments.
All these practices, including several other victimizing actions a creditor may impose on a debtor, characterize a predatory lender. Debtors that have fallen into the trap of a predatory loan can quickly find themselves in over their heads with financial difficulties. These practices contribute to a large number of bankruptcy cases in the U.S., most of which are filed under Chapter 7. If you’re struggling with the effects of predatory lending and are unable to meet monthly debt payments, filing for bankruptcy might be the right choice for you.
If you choose to work with Behm Law Group, Ltd. to file your bankruptcy case and halt creditor action, you can trust our attorneys to fight predatory lenders. Contact us today at (507) 387-7200 to learn more about filing for bankruptcy in Owatonna, MN.