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By Jacob Sonenshine
Uber and Lyft drivers in New York City are demanding higher pay — and they're going straight to the city to get it.
The Independent Driver's Guild (IDG) is petitioning the New York City's Taxi and Limousine Commission (TLC), which implements and enforces New York City transit rules and also regulates the market for yellow cab medallions, "to enact a livable minimum wage for app-based for-hire vehicle drivers." The petition has accrued more than 15,000 supporters.
Ride-hailing companies, most notably Uber and Lyft, have been cutting pay for the last several years, and their drivers have reached their threshold.
"We are making much less than we were just a few years ago -- and companies like Uber and Lyft are pocketing more," the petition said.
This isn't the first time drivers have complained. In 2017, the IDG petitioned for better pay using a New York City law enforced through a TLC rule, which then obliged ride-hailing services to add a tipping option for customers.
But now the drivers want a real wage. They're demanding a 37% pay increase, and they want the ride-hailing companies to stop "price gouging." The petition proposes customers do not get charged more than 25% over the driver's profit on each ride.
Uber, specifically, has been cutting pay since 2013. Back then, a five-mile, 30-minute Uber ride in New York City cost $28.50 and the driver made $20.25. In 2018, for that same ride, the driver makes $14.68, while the customer fare varies, and could surpass $28.
IDG is requesting that the ratio for that length of a ride be set to $20.11 for drivers and $27.42 charged to the customer. Here's a visual of that request.
IDG "Gone are the days of a fat 20 percent Uber fee," the petition said. "Riders are being gouged with fees like 143 percent, as in this example."
IDG Of course an increase in driver pay would impact Uber's bottom line unless that cost was passed on directly to the consumer. The ride-hailing company posted a net loss and negative cash flow in 2017.
Uber CEO Dara Khosrowshahi said the company could turn a profit right now but it doesn't want to because doing so would sacrifice growth and innovation.
New York City is required to respond to the petition within sixty days.
Copyright © 2018 Business Insider Inc. All rights reserved.
By Molly Crane-Newman, Dan Rivoli and Graham Bayman
A Queens cabbie who drove a yellow taxi for three decades hanged himself in his garage after suffering massive financial woes in the era of Uber, officials and friends said Wednesday.
Nicanor Ochisor, 65, was found hanging from a wooden beam in his garage on 58th Road near 69th Lane in Maspeth Friday morning, police said.
Taxi advocates quickly blamed the Romanian immigrant’s suicide on the glut of drivers working for app-driven, for-hire companies like Uber and Lyft taking money from medallion drivers.
“He could no longer bear the strain of the impending loss of everything he had worked for in his life in America,” the Taxi Medallion Owner and Driver Association said in a statement.
The organization pointed out that in 2014, medallions were selling for more than $1 million. Now, the value has dropped to about $175,000.
The group said Ochisor is the fourth cab driver, and first medallion owner, to take his own life over the last few months.
“We have been begging the mayor and the Taxi and Limousine Commission to act, and all we have gotten is either lip service or meaningless gestures that don’t get to the root of the problem: There are way too many cars on the streets,” taxi industry group spokesman Nino Hervias said.
TLC Commissioner Meera Joshi said the agency was “deeply distressed” by Ochisor’s death.
“To all that he has left behind, his family, friends and his brothers and sisters in the industry, our heartfelt condolences — we mourn with you,” Joshi said.
Ochisor had his medallion for nearly 30 years after purchasing it in 1989, officials said. He never rented out his medallion, but shared the driving duties with his wife, longtime friend Dan Nitescu said.
“His wife was driving in the morning, he was driving in the afternoon to midnight,” said Nitescu, 64.
“Since Uber came to town … the whole taxi business was almost destroyed. The medallion value went to almost zero.”
As the price of a taxi medallion continued to tumble, Ochisor “got into a deep depression,” Nitescu said.
“He was telling me all the time that the value of the medallion is not going to be like it used to be anymore, ever,” he said. “Now, he told me, for the last six, seven months that whatever he makes together with his wife, he was making by himself alone, before the Uber.
“He's gotta pay his mortgage on the medallion,” Nitescu added. “He was making the payments, but it was very hard. He struggled himself. It was bothering him all the time.”
Councilman Ruben Diaz Sr. (D-Bronx) has proposed a bill that would more tightly regulate the online for-hire industry.
The bill would establish an annual $2,000 fee on each vehicle, and any new services would have to do an environmental study. It would cap the number of vehicles per base at 250. Currently any Uber driver can respond to a call from any Uber base.
© Copyright 2018 NYDailyNews.com. All rights reserved.
Bankruptcy may be the best choice for people or businesses who can no longer afford to pay their debts. Bankruptcy allows people to obtain a clean slate by liquidating their assets to pay off debts, or by creating a repayment plan to reorganize and settle their debts. Bankruptcy proceedings are initiated when the debtor files a petition with the bankruptcy court. A petition can be filed by an individual, by spouses jointly, or by a corporation or other entity. If you need help with your bankruptcy filing in California, contact the Roseville Chapter 7 bankruptcy lawyers at The Bankruptcy Group today.
Benefits of Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as liquidation, occurs when a trustee takes over the assets of a debtor’s estate. Then the trustee, under bankruptcy court supervision, reduces the debtor’s assets to cash and makes distributions to creditors. The distributions are made subject to the debtor’s right to retain certain exempt property and the rights of secured creditors. Generally, Chapter 7 cases have little or no nonexempt property, which can affect the distribution that unsecured creditors may receive from the debtor. Generally unsecured creditors will receive a distribution only if there were assets to liquidate and they file a proof of claim with the bankruptcy court.
Perhaps most importantly, most debtors who file as individuals receive a discharge that releases them from personal liability for certain dischargeable debts. This may include discharging taxes under Chapter 7.
It should be noted that to be eligible for Chapter 7 bankruptcy, a debtor must pass the means test. The means test is used to determine whether individual consumer debtors qualify for relief under Chapter 7. If a debtor’s income exceeds certain thresholds they likely will not be eligible for Chapter 7 relief.
Benefits of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is designed to serve individual debtors who have a regular source of income. If the debtor has a regular source of income, he or she could potentially submit a plan to repay creditors over three to five years. The bankruptcy court must approve this repayment plan and the debtor must have sufficient funds out of their regular income to pay previous debts and remain current on all other debts.
One of the biggest differences between Chapter 13 and Chapter 7 bankruptcy is that Chapter 13 bankruptcy often allows the debtor to retain their home, but does not allow a debtor to receive an immediate discharge of their debts like Chapter 7 bankruptcy, which is a quicker process.
Reasons to Choose Chapter 13
Depending on your needs, there are several reasons to choose Chapter 13 over Chapter 7 bankruptcy. For instance, if you are behind on your mortgage or maybe even a car loan, Chapter 13 allows you to reorganize your debt so that you can remedy missed payments and possibly even renew your original agreement.
Many individuals are currently facing student loan debts that are not dischargeable and that they may not be able to afford. However, Chapter 13 bankruptcy may allow you to include student loan debt into a repayment plan to make payments more affordable. Depending on the circumstances, tax obligations or other forms of debt not discharged by Chapter 7 bankruptcy may also be included in a Chapter 13 reorganization plan.
Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy does not require you to forfeit any property deemed nonexempt under state or federal law or any property at all for that matter. Instead of giving up property, a Chapter 13 debtor repays debts out of their income as discussed earlier. If you have property that would be liquidated in a Chapter 7 bankruptcy that is valuable to you, Chapter 13 bankruptcy may be for you. However, there are also cases where Chapter 7 debtors can retain their property. An experienced attorney can help you make a decision about which approach is best for your financial circumstances.
It is not uncommon for debtors to also have co-debtors. Chapter 7 bankruptcy does not discharge a co-debtor’s liability, and a co-debtor will likely be targeted by creditors in a Chapter 7 bankruptcy. In Chapter 13 bankruptcy, creditors will generally not target a co-debtor if a debtor stays current on their repayment plan.
Reasons to Choose Chapter 7
Chapter 7 bankruptcy is a popular choice over Chapter 13 bankruptcy if a debtor does not have a regular income and cannot afford to repay their creditors in a span of three to five years.
One of the main reasons many people choose Chapter 7 bankruptcy over Chapter 13 is that various forms of debt that can be discharged practically immediately. Another reason a debtor would choose Chapter 7 over Chapter 13 bankruptcy is that the majority of, or sometimes all of, their debt is dischargeable under Chapter 7 bankruptcy. Debts like credit card bills or medical bills would fall under dischargeable debts.
Since bankruptcy courts typically issue a discharge of debt within roughly four to six months, a Chapter 7 bankruptcy may be preferred as a possible panic button if creditors are closing in.
Need Debt Relief? Contact Our Roseville Bankruptcy Attorneys for Help
As we have discussed, there are plenty of factors to consider when facing the idea of filing for bankruptcy. While some decisions may seem clear-cut, the U.S. Bankruptcy Code is an intricate set of laws that should be approached with care and diligence. The Roseville and Sacramento bankruptcy lawyers at the Bankruptcy Group are dedicated to helping clients navigate their way through bankruptcy court, filing Chapter 13, and filing Chapter 7 bankruptcy. We will work diligently to pursue the financial outcome you deserve. Contact us today at (800) 920-5351 for a free consultation.
The post How to Determine if Chapter 7 or 13 Bankruptcy is Best for You appeared first on The Bankruptcy Group, P.C..
Bankruptcy may be the best choice for people or businesses who can no longer afford to pay their debts. Bankruptcy allows people to obtain a clean slate by liquidating their assets to pay off debts, or by creating a repayment plan to reorganize and settle their debts. Bankruptcy proceedings are initiated when the debtor files […]
The post How to Determine if Chapter 7 or 13 Bankruptcy is Best for You appeared first on The Bankruptcy Group, P.C..
If you are overwhelmed with debt, filing bankruptcy may be a good option for you. It can help you eliminate debt, obtain manageable payments, and address the past so you can plan for the future. A skilled bankruptcy lawyer at Allmand Law can evaluate your situation and help you understand your legal options. Whether you file Chapter 7 or Chapter 13, you deserve to have a knowledgeable legal advisor on your side. Call us today at 214-884-4020.
1. Avoid Accumulating New Debt
It can be tempting to take out a new credit card or a personal loan when finances are difficult. However, any new debt you obtain within 12 weeks before filing bankruptcy can have a negative impact on your case. Creditors may claim that you knew you were filing bankruptcy and got into debt without the intention of repaying it. They may accuse you of fraud.
It’s best to avoid obtaining new debt altogether. However, if you must charge something on a credit card, make sure it’s not a luxury item or cash advance. Living expenses, such as groceries or utility bills do not face as much scrutiny by the bankruptcy court.
2. Avoid Using Retirement Funds
You may be searching for a way to pay debts and cover living expenses. However, using retirement funds can hurt you now and in the future. Withdrawing retirement funds before retirement age can result in heavy tax penalties. You may also cause yourself a problem in the future when you don’t have enough money to comfortably retire. In most cases, you will be able to keep your retirement accounts when filing bankruptcy.
3. Avoid Moving or Transferring Assets
When filing bankruptcy, you have to disclose all of your assets as well as those you’ve recently disposed of. If you recently sold assets or transferred them to someone else, such as a friend or family member, you may be accused of fraud for trying to hide assets. Bankruptcy provides you a way to eliminate or better manage debt; however, it often uses current assets to pay off those debts. If you want to keep your assets, consult a bankruptcy lawyer before filing bankruptcy.
4. Avoid Selectively Repaying Debt
You may want to make sure certain debts are paid before filing bankruptcy. For example, if you have personal loans from friends or family members, or if you have unpaid bills from your primary care doctor, you may want to make sure those get paid before eliminating the rest of your debt. However, this is called “preferential payment,” and it’s not favored by the bankruptcy court. There is a specific process that you are required to follow when repaying debts, and selectively repaying those who may not be a legal priority is not allowed. The bankruptcy court may request those funds back from the creditors when you go through the process of filing bankruptcy.
5. Avoid Providing the Court With Inaccurate Information
You will have to provide the bankruptcy court with a plethora of information. It can seem extremely invasive to disclose such personal information. However, if you provide inaccurate information or are not completely truthful, you can face criminal and civil penalties.
6. Don’t Avoid Paying Income Taxes
If you owe past due taxes or feel you can’t afford income taxes, you may be tempted to avoid filing with the IRS altogether. However, you must report your tax debts to the court when filing bankruptcy. If you haven’t filed taxes or failed to pay past due taxes, you may be unable to discharge that debt.
7. Don’t Avoid Filing Bankruptcy
Many people don’t want to file bankruptcy, so they avoid it until their financial situation is overwhelming. You may attempt to use all of your savings and sell personal belongings to pay debts. Instead, you should consult with a bankruptcy attorney and learn about your legal options for filing bankruptcy.
The post 7 Things to Avoid When Filing Bankruptcy in Texas appeared first on Allmand Law.
In California, filing for bankruptcy in certain instances may prevent a tenant from being evicted. Bankruptcy is a means by which people can discard debt or make a plan to repay debts to creditors. Filing a petition for bankruptcy will not always protect a tenant from eviction, so it is important to understand the possible consequences of using a measure as drastic as bankruptcy to stay an eviction. If you require assistance determining whether filing bankruptcy is the right choice when facing eviction, contact the Roseville Chapter 13 bankruptcy attorneys at The Bankruptcy Group today.
Types of Bankruptcy in CA
Chapter 7 bankruptcy allows for the debtor to liquidate his or her assets and use the money from that liquidation to pay off creditors. Under Chapter 7 a debtor will likely receive a rapid discharge of certain debts, although not without experiencing consequences such as a poor credit score.
Chapter 7 bankruptcy is rarely the most helpful option for an individual who wants to avoid eviction in California. Chapter 13 bankruptcy is generally more beneficial to a tenant who is trying to avoid being evicted.
Chapter 13 bankruptcy is geared towards debtors who have a regular source of income, and compared to Chapter 7, allows greater opportunity to possibly retain an asset like their home. A debtor in a Chapter 13 bankruptcy proposes a plan to creditors to repay their debts over a period of time, usually three to five years. As long the bankruptcy court approves the plan, a debtor can keep their home and make payments based on their anticipated income over the duration of the repayment plan. However, it is critical to adhere to the plan and stay current on all payments.
Unlike Chapter 7, Chapter 13 bankruptcy does not allow for debtors to immediately discharge their debts a few months after filing for bankruptcy.
Can Filing Bankruptcy Help Renters with Eviction?
If a landlord properly gives a tenant the required notice to vacate a property after the expiration of the lease and the tenant does not comply, a landlord can move to evict the tenant. To begin eviction proceedings in California, a landlord must file an unlawful detainer lawsuit in superior court.
If a tenant files for bankruptcy while an unlawful detainer lawsuit is pending, they are generally entitled to an immediate automatic stay, or delay of the pending action. An automatic stay is generally imposed against certain creditors, like the landlord, who want to start an action against a debtor or the debtor’s property.
Once an automatic stay has been imposed on the tenant’s creditors, it will halt proceedings for an eviction and allow the tenant to remain in their home. If a tenant can file for bankruptcy prior to the landlord commencing an unlawful detainer lawsuit the automatic stay would generally operate to prevent the landlord from filing the action altogether.
Limitations of the Automatic Stay
While a tenant’s filing of bankruptcy may hinder eviction proceedings, there are a few options a landlord could take to ignore the automatic stay and continue the eviction proceedings. For example, a landlord may request relief from an automatic stay and the bankruptcy court may lift the automatic stay if the landlord can show that he or she is entitled to such relief.
The automatic stay would not prevent a landlord from enforcing a judgment obtained prior to the tenant petitioning for bankruptcy. Additionally, a tenant cannot be protected by an automatic stay if the landlord’s eviction action is based on the tenant doing harm to the rental property, or the tenant using illegal controlled substances on the property.
A bankruptcy case can also be dismissed for various reasons, such as the tenant filing in bad faith or neglecting to pay fees, which would remove any delays or protections associated with the automatic stay (or a repayment plan in Chapter 13).
Depending on these and other factors, a timely filing of bankruptcy can potentially halt eviction proceedings in California. However, filing for bankruptcy may not always have the desired effect a person may want. There are other options a landlord may take to continue eviction proceedings which would leave a tenant in a tight spot. Even if a landlord could not get the bankruptcy court to overturn the filing and continue the eviction, the automatic stay granted by filing for bankruptcy will eventually lapse and the tenant would have to continue to fight the eviction.
While filing for Chapter 13 bankruptcy may be the best choice for an individual who seeks to keep their home, it is not without its pitfalls. A debtor who files for Chapter 13 bankruptcy must have a regular income, sufficient income to pay off their unpaid debts, and sufficient income to continue paying future mortgage payments.
Roseville Bankruptcy Attorneys for Homeowners and Renters Facing Eviction or Foreclosure
This is a lot for a person to think about when facing an eviction and likely dealing with other issues in their lives as well. This is where The Bankruptcy Group can help you. The Bankruptcy Group have a staff of experienced attorneys and legal professionals who have spent years working in the field of bankruptcy and real estate to get favorable results for their clients.
Before you make a decision as difficult as filing for bankruptcy, take the time to consult with our legal professionals. Contact our Roseville bankruptcy lawyers today at (800) 920-5351 for a free consultation.
The post Can Bankruptcy Prevent an Eviction in California? appeared first on The Bankruptcy Group, P.C..
Taxi Limousine Commission (TLC) Medallion Sales Data from February 2018The February 2018 sales data is out from the TLC. When we filter out sales from foreclosure and estate sales, sales for New York City taxi medallions ranged from $195,000 to $400,000, with sales between those figures. In this author’s opinion, the median sales price and fair market value of taxi medallions appears to be $197,500. It will be interesting to review the next few months of TLC sales data to see if $197,500 is a new floor or merely a pause in the continuing decline of the price of taxi medallion. This author believes that the new laws and fees that have been proposed by various elected officials, if enacted, will negatively impact Uber and other ride hailing services and potentially increase the value of future taxi medallion sales. Jim Shenwick Price Type of Sale Number of Medallions $750,000 Foreclosure 2 $750,000 Foreclosure 2 $750,000 Foreclosure 2 $750,000 Foreclosure 2 $750,000 Foreclosure 2 $700,000 Foreclosure 2 $420,000
2 $400,000
2 $400,000 Foreclosure 1 $400,000
1 $375,000 Estate 2 $360,000
2 $350,000
2 $195,000
1 $180,000 Foreclosure 1 $170,000 Foreclosure 1 $160,000 Estate 1 $125,000 Foreclosure 1 $0 Family 1 $0 Estate 1
As many of you know, the representation of taxi medallion owners has become a sizeable portion of our practice. This month, we’d like to discuss chapter 13 bankruptcy as a potential option for “underwater” taxi medallion owners (where the value of the taxi medallion securing the loan is less than the balance outstanding on the loan).
In contrast to a chapter 7 (liquidation) bankruptcy, a chapter 13 bankruptcy is intended to provide an adjustment of debts, and is best suited to individuals who want to keep property (such as a house and/or a taxi medallion) after their bankruptcy case is concluded. However, chapter 13 cases are more complex than chapter 7 and less expensive and less complex than chapter 11 and come with some important limitations that potential debtors should be aware of:1. 1. There is a limit on how much debt a chapter 13 debtor may have. Under §109(e) of the Bankruptcy Code, only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts of less than $394,725 and noncontingent, liquidated, secured debts of less than $1,184,200 may be a debtor under chapter 13. These debt limits are adjusted every three years and will be adjusted again in April 2019.
3 2. Most chapter 13 repayment plans are between three years and five years in length. The length (or commitment period) of a chapter 13 plan depends on a potential debtor’s income and the amount of time needed to pay off the debts included in the plan. Since BAPCPA was enacted in 2005, all debtors above the median income for their state and family size must complete a “means test” to determine their eligibility for bankruptcy. Chapter 13 debtors need to complete two forms, the “Statement of Your Current Monthly Income and Calculation of Commitment Period” (to determine the debtor’s current monthly income and the length of the plan) and “Chapter 13 Calculation of Your Disposable Income.” (to determine how much disposable income the debtor has to make plan payments).
3. The proposed plan must be feasible. Feasibility is a requirement for plan confirmation. Section 1325(a)(6) of the Bankruptcy Code provides that "the court shall confirm a plan if ... the debtor will be able to make all payments under the plan and to comply with the plan." In other words, can the debtor make all the proposed payments to creditors over the length of the plan? This standard can usually be satisfied if the debtor has a regular source of income such as a job or benefit payments.
3 4. The chapter 13 debtor must perform a “liquidation analysis” to ensure that creditors are treated fairly. Section 1325(a)(4) of the Bankruptcy Code provides that the court shall confirm a plan if “the value, as of the effective date of the plan, of property to be distributed under the plan on account of each allowed unsecured claim is not less than the amount that would be paid on such claim if the estate of the debtor were liquidated under chapter 7 of this title on such date.” This is also known as the “best interests of creditors” test. The proposed chapter 13 plan must pay unsecured creditors (i.e. credit card accounts and loans with no collateral) one dollar more than they would receive in chapter 7.
5. Finally, chapter 13 bankruptcy can also be used to transfer an underwater taxi medallion back to the bank that financed it and allow the debtor to keep his or her house and other property.
If the taxi medallion owner’s unsecured or secured debt exceed the limits discussed in item 1 above, then an out of court workout, settlement (negotiation with the creditor) or a chapter 7 bankruptcy case are other options. For more information about chapter 13 and other ways to settle your debts AND keep your taxi medallion, please contact Jim Shenwick.
If you have been a victim of identity theft, you can file bankruptcy but you need to be prepared for potential complications.Identity theft is a big problem in 2018 and a number of large retailers and even credit bureaus have been hacked. Personal and financial information about millions of Americans is available for sale on the “dark web” and criminals use this stolen data to open credit card accounts, sign for personal loans, and even buy houses and cars. You will not know that there was a problem at all until the bills start to arrive.I have personally been a victim of identity theft twice. One time, a thief got hold of my credit card number and charged $5,000 to a custom suit maker in Hong Kong. In another instance, a fraudster hacked my American Express account and purchased (and picked up) a high end desktop Mac. In both of these situations the credit card company accepted my fraud report and canceled all charges.If you find yourself with identity theft problems, you will discover that fixing the problem can take a lot of time and effort. Banks and other lenders may not believe you and will pursue collection. The fraudulent accounts in your name may be sold to collection agencies who don’t care that you are alleging identity theft. You may find yourself with lawsuits, endless collection calls and damaged credit.Bankruptcy as an Option to Address Identity Theft DebtsYou may decide to use bankruptcy as the tool to address identity theft problems. Bankruptcy may be an attractive option if you have other, legitimate, debts that you need to deal with as well.When you file bankruptcy, you will force all of your creditors – both legitimate and those arising from identity theft – to deal with you at one place and at one time. If your case goes through to discharge, you will be forever clear of creditor claims.On the other hand, your creditors have the right to object to either the discharge of a specific debt or to your bankruptcy as a whole. These types of objections are rare but if the amount at issue is large, creditors will file objections.If you find yourself facing bankruptcy objections you will have to incur the cost of paying a lawyer to defend you. This may seem very unfair but if a creditor initiates bankruptcy litigation you need to respond.Always File Police Reports if Your Identity has been StolenMy experience has been that you can avoid finding yourself in litigation by taking proactive and documented steps to report the identity theft and to file police reports for every instance of identity theft. You cannot sit back and assume that just because you did nothing wrong, you won’t end up owing money.If a creditor’s lawyer contacts me prior to filing a bankruptcy objection and I can provide that lawyer with copies of police reports, letters to creditors and credit bureaus and other evidence that you are not at fault, there is a much better chance that the creditor’s attorney will recognize that he is likely to lose his objection to your bankruptcy and that he will advise his client to back down.If you have been a victim of identity theft and think bankruptcy might be an option to deal with this problem, please reach out to me – I’d be happy to help.Additional Reading:How to Request a Credit Freeze from the Credit BureausThe post Can You File Bankruptcy if You Have Been the Victim of Identity Theft? appeared first on theBKBlog.
If you have been a victim of identity theft, you can file bankruptcy but you need to be prepared for potential complications.Identity theft is a big problem in 2018 and a number of large retailers and even credit bureaus have been hacked. Personal and financial information about millions of Americans is available for sale on the “dark web” and criminals use this stolen data to open credit card accounts, sign for personal loans, and even buy houses and cars. You will not know that there was a problem at all until the bills start to arrive.I have personally been a victim of identity theft twice. One time, a thief got hold of my credit card number and charged $5,000 to a custom suit maker in Hong Kong. In another instance, a fraudster hacked my American Express account and purchased (and picked up) a high end desktop Mac. In both of these situations the credit card company accepted my fraud report and canceled all charges.If you find yourself with identity theft problems, you will discover that fixing the problem can take a lot of time and effort. Banks and other lenders may not believe you and will pursue collection. The fraudulent accounts in your name may be sold to collection agencies who don’t care that you are alleging identity theft. You may find yourself with lawsuits, endless collection calls and damaged credit.Bankruptcy as an Option to Address Identity Theft DebtsYou may decide to use bankruptcy as the tool to address identity theft problems. Bankruptcy may be an attractive option if you have other, legitimate, debts that you need to deal with as well.When you file bankruptcy, you will force all of your creditors – both legitimate and those arising from identity theft – to deal with you at one place and at one time. If your case goes through to discharge, you will be forever clear of creditor claims.On the other hand, your creditors have the right to object to either the discharge of a specific debt or to your bankruptcy as a whole. These types of objections are rare but if the amount at issue is large, creditors will file objections.If you find yourself facing bankruptcy objections you will have to incur the cost of paying a lawyer to defend you. This may seem very unfair but if a creditor initiates bankruptcy litigation you need to respond.Always File Police Reports if Your Identity has been StolenMy experience has been that you can avoid finding yourself in litigation by taking proactive and documented steps to report the identity theft and to file police reports for every instance of identity theft. You cannot sit back and assume that just because you did nothing wrong, you won’t end up owing money.If a creditor’s lawyer contacts me prior to filing a bankruptcy objection and I can provide that lawyer with copies of police reports, letters to creditors and credit bureaus and other evidence that you are not at fault, there is a much better chance that the creditor’s attorney will recognize that he is likely to lose his objection to your bankruptcy and that he will advise his client to back down.If you have been a victim of identity theft and think bankruptcy might be an option to deal with this problem, please reach out to me – I’d be happy to help.Additional Reading:How to Request a Credit Freeze from the Credit BureausThe post Can You File Bankruptcy if You Have Been the Victim of Identity Theft? appeared first on theBKBlog.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.