Hundreds of thousands of identity theft complaints are reported to the Federal Trade Commission every year. Anyone with a social security number could be a potential target for identity theft. This event can lead to many financial woes in the future, and possibly require filing bankruptcy.
When data breaches happen, they can place the private information of people at risk. You may be surprised to hear that many complaints involved minors. Kids are prime targets; they don’t apply for credit for years, and they have a clean social security number to work with. If your minor child has become a victim of identity theft, file a police report, and report the issue to both the Consumer Protection Bureau and Federal Trade Commission.
The FTC has also released a report outlining the current situation in America regarding identity theft. Here are the interesting points noted:
With access to so much information, and security moving too slowly to protect it, the internet is an identity thieves dream come true. Besides fraud alerts, consumers should also frequently check credit reports. If the theft goes too long, victims of stolen identity can find themselves in a real uphill battle trying to prove to credit agencies that charges were not made by someone other than themselves. Identity theft is a growing problem that in the most severe cases leaves people feeling helpless. At some point, no amount of time or money is enough to reverse the damage that has already been done. One thing you can do to protect yourself and family is to place a “fraud alert” on credit profiles. For a minor child, submit request for all credit agencies to place a “security freeze” on accounts until the child is at least 18 years of age. Wisconsin in one of many states who allow credit freezes for minors. If you have already become a victim, hire a reputable bankruptcy lawyer to provide the guidance and resources that you will need at a time like this.
Debt Dischargeable in Ch. 7
The great news about bankruptcy is that credit card debt and most other unsecured consumer debts are dischargeable in Chapter 7 Bankruptcy. If you’ve experienced identity theft, it’s likely that there are multiple unsecured debts involved including some you have not yet been made aware of. Once the petition is filed for Chapter 7, creditors will no longer be able to harass you about these debts. You and your bankruptcy lawyer will work together to uncover and gather information. Resolving all of your debt issues through the bankruptcy code will be less expensive and quicker than trying to tackle them one by one. After it’s all said and done, your credit score can begin to improve and you can begin to rebuild your life.
If you are considering filing for Chapter 7 bankruptcy, it is essential to be prepared and understand the process thoroughly. One way to prepare is by reading about debt to payoff balances to gain insight into managing your finances better. The team at Debt Advisors Law Offices can provide you with all the necessary information and guide you through the process. They can also help you understand the importance of family financial emergency preparedness and how to avoid falling victim to consumer money scams that target bankruptcy filers. If you own a luxury home, it’s also worth considering the current foreclosure rates and how they might affect you.