Identity theft and bankruptcy

By Marrero, Chamizo, Marcer Law, LP,

Florida residents who have been victims of identity theft should make sure that they take the appropriate steps to correct the situation. While bankruptcy may be a useful financial and legal tool to use for certain financial problems, using it to fix the damage caused by identity thieves may not be the best choice.

Identity theft is on the rise. This may be in part to the fact that the card skimming devices that are used to commit the crime are not only easily available, they are simple to use. Crowded establishments, such as airports and subways, are areas where individuals are particularly vulnerable to being victimized.

One of the reasons victims of identity thieves may not want to use bankruptcy is that they can have the illegal debts removed from their credit report instead. After the crime has been reported, the illegal debt will be removed in no more than 4 days. Opting to use bankruptcy may have a long-lasting effect on one’s credit. The record of the bankruptcy would be a part of their credit reports for 10 years. This can serve as an obstruction to being able to get approved for a loan or receiving an offer of employment.

Bankruptcy is a legal tool that an individual can use to resolve significant debt. A bankruptcy attorney may examine a client’s current financial situation and advise whether bankruptcy should be pursued. The attorney may also advise the clients of the benefits and cons of the different types of bankruptcy for which the client may qualify.