Dubiln Packard

Todd Murphy

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How To Protect Your Financial Information From Credit Card Hacks

TargetBy now many of you I’m sure have heard about the breach of credit card information by hackers who infiltrated the information data-bases of Target and Neiman Marcus (or Needless Markup as my wife likes to call them) and may be wondering just how to protect your financial information.

What is interesting about these data thefts is not so much that yet another one or two occurred but that these types of information breaches are happening regularly and many times the companies either don’t tell us about them or wait until a better time to tell us so we don’t stop shopping at a their stores.

For example, Stacey Vanek Smith of Market Place Business reported that Neiman Marcus knew about the data breach in mid-December but only announced it after the Holiday shopping season was over.  And Target didn’t tell the entire story until several days later and even then seemed to manage the information it did release.  Often such announcements are made on slow news days in order to minimize the impact.

Use of credit cards and debit cards is so common, we rarely use cash at all. So, what should you do to protect your date from these on-going breaches that are happening on a regular basis?  Pay with cash only?  Probably not.

How to protect your financial information.

You simply cannot control the data once you provide it to a retailer but what you can do is make your data un-useable if it is stolen.  Perhaps one good idea might be to regularly change your credit card numbers by calling your credit card provider and telling them you lost your card.  They will take immediate action to in-activate the old number and provide you with a new one right away.  At the same time, any charges that come on that card will not be charged to you since you reported the card as lost.

This can be a bit of an inconvenience but it will be effective.

Let me know if you have any good ideas to protect your financial information.

 

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How can I protect my medical identity

Most people are unaware of the growing threat of medical identity theft but it can be serious if someone steals your protected health information (PHI), otherwise known as your “medical identity,” to gain access to medical services, to procure drugs, or to defraud private insurers or government benefit programs such as Medicare and Medicaid.

Your medical identity consists of your health information such as medical history, allergies to drugs, blood type, prescriptions, and of course your social security number and health care provider.

The transformation to electronic record-keeping has made it easier for some to obtain your PHI by some but most often, the theft is done by someone close to you.

In a recent Survey on Medical Identity Theft published by Ponemom, it was found that the thief is most likely to be someone the victim knows very well.  In the study which surveyed 700 victims of medical identity theft, most cases result not from a data breach but from the sharing of personally identification credentials with family and friends.  Or, that family members take the victim’s credentials without permission.

If someone uses your medical information, such use could contaminate the your health records with erroneous information such as blood type, serious health conditions, and prescription drugs.

Also, if a friend or family member uses your medical insurance to obtain treatment, you could become liable for the amount of the charges not covered by the insurance and possibly all of the charges once the insurance company realizes fraud was involved.  Receiving a bill from a medical provider might be the first sign that something is wrong and should be acted on quickly.

Example:

Jack was an Army Reservist who was called for duty in Afghanistan.  When he left, he put his medical insurance card form his employer in his dresser drawer for safe keeping.  While he was away, his brother, Bob, who had lost his job and therefore his health insurance, used Jack’s card to obtain medical treatment for a serious illness.

When Jack returned from service, he was almost terminated from his job for letting his brother use his card while he was away.  Of course he hadn’t but he had to go through the pain and effort of clearing his records while his brother was prosecuted for stealing medical services.

All of this could have been avoided if Jack kept his medical insurance card in a safer place.

How to keep your medical identity safe:

  • Keep your records in a lock box
  • Don’t share your records, even casually with another family member unless it is absolutely necessary
  • If you do share your information, keep a record of what information you shared and with whom
  • If you lose your wallet containing medical information, be sure to report the loss to your insurance company right away so your account can’t be breached

We all should be aware of the negative consequences of a medical identity theft and take steps to safe-guard our data.

 

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What Are Median Income and Means Tests?

What are median income and means tests?  These are two different tests used to figure out if you can file for bankruptcy.  Let’s review them one at a time:

The Median Income Test:  This test  is used when your debt is NOT business debt, and is mostly consumer debt.  To find your median income, you add your total monthly income for the past 6 months and divide it by 6.  Then, you compare it to the current median income figures for the same state and family size as yours, published on the U.S. Trustee website (insert link).  If your income is below this number, you can file for bankruptcy.  An attorney can advise you if filing for Chapter 7 or Chapter 13 is best for you.  If your income is more than the published median income for a family size similar to yours in your state, then you must do the Means Test.

The Means Test:  This test is used when your average monthly income is more than the median income for your state published on the U.S. Trustee website.   A lawyer can help you calculate this test.  The Means Test determines if you have money leftover at the end of the month, which affects whether or not you can file for bankruptcy.  With this test you calculate how much money you are bringing in, then subtract your expenses. The problem with this test is that you must use the published IRS numbers for your expenses, like food and transportation.  Sometimes those numbers aren’t the same as what you are actually spending.  Also, you can’t include student loans or retirement account loans when calculating a means test.The means test can show that you have money left over at the end of the month to pay your bills when in reality you don’t.

Speaking with an experienced bankruptcy lawyer can help you figure out where you stand on both types of tests, and help you figure out if you qualify for bankruptcy and if that is the best option for you.

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Medical Debt: I Need Help!

Medical debt can quickly become a nightmare, especially if you don’t have health insurance.  Sometimes filing for bankruptcy can help if your medical debt is so much that you can’t afford to pay it.

Two years ago, Tracy ended up in the emergency room of her local hospital after falling off a ladder when she was painting her kitchen.  She had broken two ribs.  She didn’t have health insurance, but figured the cost wouldn’t be astronomically high – she and her husband would figure out a way to pay it off.  Life happens, right?

She didn’t expect the bills to run over $25,000.00.  She filed for state-funded Medicaid, but was told her husband makes too much money for her to qualify.  She filed for the local hospital’s “Charity Care” program, but was told the same – she didn’t qualify because she and her husband make “too much money.”

Tracy’s husband manages a restaurant.  He makes just under $60,000 per year.  Tracy stays home with their baby daughter.  After their $1,300 per month mortgage payment, 2 car payments, car insurance costs, utility bills, and she and her husband’s maxed-out credit card bills, there’s barely enough money left at the end of the month to buy food.  Tracy couldn’t believe these people were telling her they make “too much money.”

Tracy consulted with a lawyer she knew to try and get the hospital to forgive the debt.  Her lawyer pleaded with the billing company, asking them to consider the fact that they just didn’t have enough money to even make small payments toward the $25,000 medical debt.  The hospital refused to make any accommodations.  Tracy refused to pay a dime toward the debt, because she felt they should understand her situation.  But the bills kept coming, and eventually she started getting calls and letters from collection agencies.  Because the debt had gone to collection, her personal credit score was now trashed.  She had been responsible her entire life, now because of some inflated medical costs she couldn’t afford, everything she had worked for was in question.

Tracy called a NJ bankruptcy lawyer and learned that if she filed for bankruptcy, she could get ALL of the medical debt and her credit card debt forgiven at the end of the bankruptcy program.  Her lawyer worked with her to come up with a plan, based on her household income, so that she can continue to make her car and mortgage payments on time, and still afford to buy food and pay her utilities.  She stopped paying her unsecured debt (medical and credit card debt), and at the end of the bankruptcy plan the $25,000.00  medical costs and her credit card bills were dismissed.

What had been a nightmare was finally resolved.  Tracy could get back to living a normal life.  Filing for bankruptcy isn’t a quick fix and isn’t supposed to be overused, but in Tracy’s case it was a valid solution to her problems.

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What to expect from a bankruptcy lawyer

Here is what to expect from your bankruptcy lawyer in New Jersey.

It usually starts with a phone call –

Then a meeting.  At that first meeting, we will explain the process which starts with gathering a large amount of financial information from you.  We give you a questionnaire to take home which asks many important questions.  We will also give you a list of documents we need to complete your bankruptcy case.

Most people take advantage of our payment plans and start making regular payments.

While making payments, you will start submitting documents

Once we have all of your documents and other financial information, we start compiling your bankruptcy petition.

Once complete, we will ask you to review it and sign it.  Then we will submit to court.

In the case of Chapter 13, we will propose a Chapter 13 Plan to the trustee for repayment of your debts over tie.  The trustee will review it and usally make comments which cold require us to amend the plan.

Approx 30 days later, we will go with you to a meeting with the trustee known as the section 341 meeting.  There the trustee will ask you some questions and ask for your identification.  This meeting usually takes no more than 15 minutes and takes place at the Trustee’s office.

Ninety days after submission of your chapter 7 petition, you should be notoied of a discharge.

In the case of a Chapter 13, you will be required to make payments to the trustee right away.

Often at the 341 meeting the trustee will provide some comments that may require an amendement to your plan.  We will submit that amendment.

Confirmation hearing.  No need to attend.  Confirmation.

After confirmation, continue to pay the trustee every month for the duration of the plan.