The already devastating crime of identity theft has taken a disturbing new turn. Identity thieves are not only ruining the credit of their victims by accumulating unpaid debt. Now many of them are now filing a bankruptcy protection in the names of their victims. A contributing factor to this practice is the current housing recession and the increasing number of foreclosure proceedings resulting.
Attracted by the benefits of provision for automatic suspension upgrade that will take effect when a bankruptcy case is filed, some unscrupulous owners on the foreclosure point using identity theft as a tool to s buy extra time or by satisfying a friend, relative or colleague to allow the offender to transfer property in their name, or impersonate someone else outright. In most cases, the identity thief will simply not show the bankruptcy hearing. The case is then rejected, but the deposit remains on the victim's credit report.
Most victims of this type of identity fraud will become aware of the crime when they are trying to get a loan or other credit, months or even years later. When asked why their request was denied, they are shocked to discover that a bankruptcy filing was registered in their name.
Identity Theft Recovery-related bankruptcy may be much harder and more expensive than other forms of identity theft. It is often necessary to hire a lawyer to prove to the bankruptcy court that the filing was fraudulent, and, if the application was filed in another county or state, the victim may need to go to that court to have the case canceled and has been removed from the court records.
For more information on the different types of identity fraud and their warning signs, visit the US Department website fraud division of Justice. If you think you have been a victim of bankruptcy fraud, contact the US Trustee Program to file a report. See NextAdvisor.com reviews and comparison chart to learn about identity theft protection services.