Filing Bankruptcy Can Help You If You Were a Victim of Fraud

Many consumers are victims of identity theft. Hackers use the credit card numbers of various people to buy high-end items. Consumers may not find out until days or weeks later when they check their credit card statements. However, conscientious people who check their accounts daily may be able to stop credit card fraud quickly before it causes too much damage to their finances.

Still, identity theft is a growing issue. Retailers are getting hacked. So are healthcare companies and even the credit bureaus themselves. Nobody is safe. Hackers can find your personal and financial information on the “dark web” and purchase it to defraud you of your hard-earned money.

In just a short amount of time, you may find yourself collecting letters and phone calls, lawsuits, and even damaged credit. What are your options in this situation? How can you get your financial situation back to where it used to be?

Credit card companies often do not make customers liable for unauthorized charges. But sometimes, it is hard to identify which charges a customer made and which ones they did not make.

Many people opt for bankruptcy to deal with fraud. It can help eliminate fraudulent charges as well as other debts you may have. Bankruptcy will force all of your creditors – whether they are legitimate or not – to deal with you. If the charges all get discharged, you will be free of them forever.

However, bankruptcy may not be the cure-all you expect. Creditors do have the right to object to any possible discharge if they believe the debt is legitimate.

That is why it is always good to have evidence. You should be proactive and document the steps you have taken to report the identity theft. This includes contacting the credit card company and even contacting the police. Police reports can be used to show that you reported the identity theft. Even though you did nothing wrong, you cannot just think that the credit card company is going to believe you.

In any case, bankruptcy does offer protection against creditors. Filing for bankruptcy triggers an automatic stay, which halts collection efforts, lawsuits, and wage garnishments. This gives you time to address fraudulent claims without constant creditor pressure. Through the bankruptcy process, you can dispute debts linked to fraud. The court will evaluate whether these debts were legitimately yours or a result of fraud.

However, keep in mind that filing for bankruptcy does not eliminate the need to pursue legal actions against those responsible for the fraud, so it is best to hire a lawyer.

Contact Us Today

You can file bankruptcy if you are a fraud victim, but it is not an easy process. Fortunately, an experienced lawyer can help.

Bankruptcy is a serious issue, but it is not the end of the world. It can help you in many ways. South Florida bankruptcy attorney Brian K. McMahon, P.A. can guide you through the process with ease. Schedule a consultation today by filling out the online form or calling (561) 658-1789. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.