Bankruptcy made worse by identity theft

Identity theft victims will be held responsible for outstanding debt incurred by others under changes in the Federal bankruptcy code. Should you be a victim of theft of identity, read on to observe how the newly enacted bankruptcy legislation impacts you. 

A little-publicized provision of the new legislation states that even victims of identity theft are affected by the terms of the new legislation. If your credit card or driver's license should be stolen from you, and some other person uses them to identify themselves as you while running up thousands of dollars worth of debt that you know nothing about, you will be held responsible and you will have to pay the debt. Identity theft has been a mounting problem during the last 10 years, but this revision to Federal bill ought to cause all of us to take concern.
 

A determined thief can almost certainly get away with anything and everything, but a couple of simple steps may help avoid an identity theft problem:

• Carry as few credit cards as you can. Carrying fifteen credit cards that you may not need inflates your vulnerability should your wallet be misplaced or stolen. If you are leaving home and you only expect to use one credit card, then only bring one along.
• Shred all of your records regularly. Most any office supply shop will stock an economical document shredder, and they're worth the money. Many identity thieves make a habit of searching through trash cans, seeking documents that will help them obtain an identity. Shred any financial documents before throwing them away.
• Do not provide your Social Security number to anybody unless it is absolutely necessary. When the Social Security program was first created in the 1930's, Legislators did not intend for the numbers assigned to each participant to turn into a de facto national ID number. Over time, however, Social Security numbers have grow to be just that. Your Social Security number is very important; guard it closely. With your Social Security number, thieves can access your credit history as well as other individualized information.
• Never give out personal identity secrets, such as your birthdate, driver's license number or Social Security number over the phone or Internet to a person you do not know.
• Analyze your credit history at least once a year and look out for peculiar or odd financial transactions. Be diligent, and you may catch a thief in his tracks. The average victim of identity theft requires nearly a year to find out that they have become victims.