New Bankruptcy Law Will Not Protect You from Identity Theft

Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy Abuse Prevention and Consumer Protection Act was designed to eliminate "bankruptcy of convenience." The perceived problem is that many compulsive gamblers, shoppers and drug users often run up huge debts on easily available credit cards with no intention of paying their bills. A relatively easy bankruptcy filing through Chapter 7 of the Federal bankruptcy code wipes all the debts clean and gives the debtor a fresh start. Studies would suggest that most people who file for bankruptcy are actually suffering from sudden illness, job loss or some other catastrophic event, but the law was passed just the same, and debtors will now have to repay at least a portion of their problem debt when the new law takes place in October, 2005.

A provision of the new law that was not well publicized is the fact that the law applies to any debt, including debt which has been incurred through theft of the debtor's identity. If someone steals your credit card, or driver's license, or both, and runs up a huge amount of debt by posing as you, then you will be held responsible for the debt. Identity theft has become an increasingly large problem in the last few years, but the new legislation should make everyone aware of the problem associated with identity theft. While a determined thief can probably steal anything, a few simple steps can make it harder for someone to steal your identity.:

  • Shred your documents. There are plenty of thieves that will sort through trash, looking for credit card receipts, bills and any document that has your signature. If you are throwing away financial documents, shred them first. Shredders can be found at any office supply store for a reasonable price.


  • Don't give out your Social Security number to anyone unless it is absolutely necessary. Congress originally intended that the Social Security number not be used as a national identity number, but over the years it has become just that. If someone with whom you are doing business asks you for your number, inquire as to whether it is absolutely necessary that they have it. Providing the number may not be required. A thief can obtain a lot of information about you if they have your Social Security number. Guard it carefully.


  • Don't carry more credit cards with you than is necessary. It's rarely necessary to carry 20 credit cards in your purse or wallet. Go through them and see if you can't keep a few in a secure place at home.


  • Check your credit report once a year and look for suspicious entries. It typically takes nearly a year for someone to find out that their identity has been stolen. Look out for loans or large purchases that you don't remember making.


  • Never give out personal financial information, especially credit card numbers, to someone that you don't know on the telephone.


    • A few simple steps, practiced regularly, can protect you from identity theft. More importantly, these steps can protect you from having to repay thousands of dollars of debt that some thief might run up in your name. Your identity is your most valuable asset. Protect it carefully.

    ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.

    In The News:

    pen paper and inkwell


    cat break through


    Questions to Ask a Credit Counseling Service about Debt Relief

    Debt relief is a topic on a lot of consumers'... Read More

    Debt Free and Carefree

    Are you still clearing a mountain of debt amassed last... Read More

    Is There Any Way To Get Out Of Debt?

    In this era where we are bombarded daily with commercials... Read More

    The 5 Secrets to Getting Out of Debt Fast

    As they stare down at a teetering pile of bills,... Read More

    Do It Yourself Debt Relief

    With mounting bills and unforeseen hardships, you may be considering... Read More

    The Human Side - Debt Stress

    In all the technical discussion you hear about credit... Read More

    You Can Make Financial Resolutions Anytime

    The New Year often brings with it a desire to... Read More

    Reduce Your Debt With These 5 Tips

    It's never pleasant to realize that you're in financial hot... Read More

    How Do You Spell Debt Relief?

    Of all the problems possible in a marriage, finances cause... Read More

    Five Hot Tips To Get Out Of Debt Forever

    The financial and psychological burden of being in debt causes... Read More

    Credit And Debt Relief--A One Stop Solution

    Amy Wright, 34, was extatic when her realtor showed her... Read More

    Personal Bankruptcy: Last Option To Legally Stop Bill Collectors

    Do you have stacks of unpaid bills?Are you in debt?Are... Read More

    Dont Let The Good Times Bury You

    It is vital to get rid of debt while things... Read More

    Credit Repair? Its All Up to You

    Log onto to a search engine such as google.com and... Read More

    What the Mail on Sunday Said

    Anyone considering Bankruptcy may have experienced fear after reading an... Read More

    Your Ticket Out of Debt Relief

    If you are in debt over your head and wondering... Read More

    Think for a Change

    I'm not sure where it originated, but I've heard it... Read More

    Bankruptcy Reform: Designed to Protect Big Business

    Who will benefit from the new bankruptcy reform laws? The... Read More

    Selecting A Credit Counselor; Asking The Right Questions.

    When you find yourself thinking about using a credit counseling... Read More

    Debt Management - Is It the Right Choice For You?

    Debt Management plans offer credit counseling clients a different and... Read More

    Tips To Take Control Of Debt Collection

    Yes, debt collection tips can help. You may think you... Read More

    Debt: Dont Pay Your Minimum Balance

    Almost all Americans carry credit card debt. Actually, over 40%... Read More

    Eliminating Credit Card Debt

    The overwhelming task of eliminating your debts can often seem... Read More

    Bankruptcy: Who is to Blame?

    If you are considering bankruptcy as a solution to your... Read More

    Bankruptcy: Which Chapter Do I File?

    There is more than one kind of bankruptcy. You should... Read More

    Life After Debt ? Strategies for Dealing with Problem Debt

    Honorably and ethically rid yourself of burdensome debts using the... Read More

    How to Avoid Bankruptcy

    Bankruptcy is a legal way to offer folks with high... Read More

    Yes to Less Debt

    Feeling stressed by the amount of debts you have? Three... Read More

    A Debt Elimination Process Must Be Initiated From You.

    The first and maybe most important step in a debt... Read More

    Bankruptcy Interest Increases as Deadline Approaches

    Congress recently passed sweeping legislation that will significantly reform American... Read More

    Debt Handling Solutions

    Sometimes debt can seem overwhelming. In those instances, or even... Read More

    Getting Past The Idea Of Budgeting & Saving Money

    I'm sure you'll agree that budgeting, saving money, and eliminating... Read More

    Debt Validation: Do you have to pay ?

    It happens all the time. Debt collectors try to collect... Read More