This section is very much necessary if you would like to recover from bankruptcy. A credit monitoring service can be of assistance to you in this. Nevertheless there are other things that can be of help to you during your fight. When you declare yourself bankrupt, you do it in order to get another chance. This cannot happen if your identity has been stolen from you. This section will be somewhat larger as it covers a larger aspect of keeping your credit in order.
These days, the crime of identity theft has been strongly rising. More recent surveys reveal that there are currently about 9 million victims every year. How it functions is that criminals steal Social Security numbers, driver's licenses, credit card numbers, ATM cards, calling cards, and anything else they can lay their hands on which can offer you information. They use this information so that they can stand in for their victims, and spend as much money as they can in as short a time as possible before they move onto their next victim.
Right now there are two basic kinds of identity theft which are:
• Account takeover: this occurs when a thief appropriates your current credit account information and buys products and services through the use of the actual credit card or just the account number and expiration date, and back of the card code.
• Application fraud: this is also referred to as "true name fraud." The thief will make use of your SSN and other ID information in order to open new accounts in your name. This will take a long time to hear about unless you have a credit monitoring system which can work for you.
In general, victims of credit card fraud aren’t liable for more than the first $50 of the loss (Lending Act, Fair Credit Billing Act,15 USC sec. 1601). In most cases, the victim won’t have to pay any part of the loss; nevertheless debit card users will be less protected against fraud.
When this fraud occurs; all your accounts are usually wiped out, but you could however be liable for the total amount of the loss depending on how fast it is reported (Electronic Funds Transfer Act,15 USC sec.1693).
Although most victims aren’t usually stuck with paying their imposters' bills, they are often left with a negative credit report which can be really bad if they’ve just experienced bankruptcy. In the mean time, you will have difficulty getting credit, loans, renting apartments, or even getting hired for a new job. Actually, you can’t make the most of all of these efforts in order to help you learn to reconstruct your credit when a fraud occurs. This is why this section is so important.
• Credit reports. These monitoring programs will always provide you with a copy of your credit report. The amount of times you will obtain one will be subject to variations depending on the service.
Some services can provide you with unlimited access to your credit file which means that you can check whenever you want to, whilst others will provide a credit report quarterly. I would recommend that you get one which can provide you with unlimited access. The reason for this is that should you choose to follow any bit of our advice on recovering from bankruptcy, you will require a copy on hand.
• Identity theft insurance. As part of the package, some services will offer identity theft insurance. Just make sure to first read the fine print.
• Cost. Obviously, cost is something that will need to be considered when you choose a monitoring service. These costs might range from a $39 per year for a very basic, one bureau monitoring service, to $200 per year for a premium, 3 bureau monitoring service.
When you try to get over your bankruptcy, bearing in mind all of your credit accounts can save your life and get you back on track. Obviously, there are certain things which credit monitoring can't do, such as take the action in your place. You can rest assured that Identity theft prevention in this day and age is necessary for recovering from bankruptcy as it can save you from having illegal attempts made on your account which could take you back to the very beginning.
Keep reading, click to the next page of our guide on how to recover from bankruptcy: Identity Theft Prevention 2