Bankruptcy Fraud
The fact that someone can open new credit in your name and rack up huge debts might be hard enough to believe, but that’s just the beginning of the damage identity thieves can do. Identity theft is taking on a new face: bankruptcy fraud. After racking up tens of thousands of dollars (or hundreds of thousands of dollars in the case of a mortgage) in someone else’s name, these identity thieves file bankruptcy under the stolen name to avoid paying debts or—in many cases—to avoid eviction from their places of residence that were fraudulently purchased or rented.
Bankruptcy is the worst negative a person can have on his or her credit report, and it can remain on a credit report for up to ten years. Although it’s a myth that those who have filed bankruptcy cannot obtain new credit, all credit offers extended to them will boast extremely high interest rates, and credit may be harder to get overall. This can be a frustrating and distressing experience for those who have gotten themselves into the situation, but imagine how much more distressing it becomes when bankruptcy is fraudulently filed in your name and your credit is negatively affected by someone else’s actions. Just convincing someone that the filing was fraudulent may prove to be very difficult. Hiring an attorney and incurring high legal costs may be necessary. But, before you panic, read the steps clearly outlined below so you know how to respond properly and quickly should you find yourself having fallen victim to bankruptcy fraud.
1. Write the U.S. Trustee in the region where the bankruptcy was filed. For a list of U.S. Trustees, you can visit www.usdoj.gov/ust.
2. In your letter, describe the situation to the U.S. Trustee in detail and provide proof of your identity. Proof of your identity can be a driver’s license, proof of residency with your name on it, social security number, or a birth certificate.
3. File a complaint with the U.S. Attorney and/or the FBI in the city where the bankruptcy was filed.
4. Get your own attorney because the U.S. Trustee will not represent your case in court or give you legal advice. Make sure to get copies of your court documents for your own records. These court documents can be acquired from the bankruptcy clerk’s office for a fee.
5. Fill out a 3949-A form and send it to the IRS at Internal Revenue Service, Fresno, CA 93888
If you would rather not fill out the 3949-A form, you can opt to send a letter to the IRS address above and include the following details:
a) The name and address of the person you're reporting.
b) The taxpayer identification number (SSN) or an employer identification number if it is a business.
c) A brief description of the alleged violation, including how you became aware of or obtained the information of the bankruptcy fraud.
d) The number of years involved.
e) The estimated dollar amount of any unreported income.
f) Your name, address, and daytime phone number so that the IRS can use it to contact you with any questions they may have.
If you feel uncomfortable with giving out your information, you are not required to do so. But it is in your best interest to give that information because it will help in the investigation. All personal information will be kept confidential, and you should send things only by certified mail to insure they reach their intended recipients.
One other source you may want to consider contacting is the FTC’s Identity Theft Hotline at: 1-877-IDTHEFT (438-4338). They can help by giving you instructions on the necessary steps needed to resolve any issues of fraud or identity theft pertaining to your specific case.
As always, time is of the essence. The longer you wait the more damage the thief can do to your good name. It’s your name, and it’s your job to protect it. We, here at IdentityTheft.com, are here to help. Be sure to bookmark this page and check back with us often for more articles on how you can protect yourself and the ones you love from becoming victims of identity theft.
