In todays electronic age, it is easy to learn of someones financial habits simply by searching bankruptcy records available online. While meant as a warning to potential creditors or business investors about a persons personal financial history, the open book of bankruptcy records also places individuals at risk for potential identity fraud.

When a person files for bankruptcy, whether it is Chapter 7 or 13 for personal bankruptcy or Chapter 11 for business reorganization, every part of bankruptcy records become open to the public as a public record. Following a bankruptcy there is a waiting period of several years before that person can file again, credit may be attainable and some fraudsters will use the information in the bankruptcy records to take out loans in that persons name.