New Bankruptcy Law Will Not Protect You from Identity Theft

Written by Charles Essmeier


Recently passed by Congress with overwhelming support,repparttar 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 ofrepparttar 140242 Federal bankruptcy code wipes allrepparttar 140243 debts clean and givesrepparttar 140244 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, butrepparttar 140245 law was passed justrepparttar 140246 same, and debtors will now have to repay at least a portion of their problem debt whenrepparttar 140247 new law takes place in October, 2005.

A provision ofrepparttar 140248 new law that was not well publicized isrepparttar 140249 fact thatrepparttar 140250 law applies to any debt, including debt which has been incurred through theft ofrepparttar 140251 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 forrepparttar 140252 debt. Identity theft has become an increasingly large problem inrepparttar 140253 last few years, butrepparttar 140254 new legislation should make everyone aware ofrepparttar 140255 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

  • Debt Consolidation – Can You Negotiate with Your Credit Card Company?

    Written by Charles Essmeier


    The average American household has nearly $10,000 in credit card debt, and many people are only able to makerepparttar minimum payment of 2% ofrepparttar 140241 balance. Even 2% is $200, and by payingrepparttar 140242 minimum payment, you could be paying onrepparttar 140243 balance for decades before you finally pay it off. Since new legislation will make it more difficult to file for bankruptcy, it may occur to savvy debtors to try to negotiate a better deal with their credit card company in order to make it easier to pay offrepparttar 140244 balance. Is this possible?

    It might be possible, depending on your credit history, interest rate, and current balance. Your best bet, especially if you have a history of paying on time, is to simply call your credit card company and ask if they will lower your interest rate. They might, especially if you tell them that you got a better offer from another bank. If you have a history of paying late, however, they probably will not be willing to lower your interest rate. That’s unfortunate, since paying late has probably promptedrepparttar 140245 credit card company to raise your interest rate inrepparttar 140246 first place. Still, it’s worth a phone call; you may get lucky.

    If you’ve been paying your bills on time, asking for a lower interest rate may berepparttar 140247 only option available to you. The credit card companies aren’t going to be too sympathetic to your financial

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