Attorney at Debt Advisors Law Offices
Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure
Filing for bankruptcy can make you a target for scams. Someone may call or write to you and mention your case, your lawyer, or the bankruptcy court. That can make a fake message seem real.
Bankruptcy cases are generally public records. Some private information, such as full Social Security numbers and full bank account numbers, should not appear in public filings. Still, scammers can use basic case information to make their messages sound convincing.
If you receive a message about your bankruptcy that seems unusual, verify it before sending money or sharing personal information. A Milwaukee bankruptcy attorney can also help you determine whether the request is legitimate.
Scammers often use information that is easy to find. A case number, court name, or lawyer’s name may be enough to make a call or letter sound official.
Caller ID is not proof that the person calling is who they claim to be. Scammers can change the number shown on your phone, a practice known as caller ID spoofing.
Another common warning sign is pressure. A scammer may tell you that you will be arrested, lose your property, or have your case dismissed unless you pay immediately. The goal is to keep you from taking time to check the story.
Bankruptcy scams can come through phone calls, texts, emails, or letters.
Be cautious if someone:
The U.S. Trustee Program has warned about letters sent to bankruptcy filers that accused them of hiding assets. The letters demanded $450 in Bitcoin and told recipients not to show the letter to their attorneys.
The U.S. Bankruptcy Court for the Western District of Wisconsin has warned about scam calls targeting people who have filed bankruptcy.
The caller may claim to work for the court and demand payment through Zelle or another payment service. The number shown on the caller ID may even appear to belong to the court.
The court states that it does not demand payment over the telephone. If you are unsure about a payment or fee, contact the Clerk’s Office using the phone number listed on the court’s official website. Do not use a number provided by the caller.
An official-looking message can still be fake. Scammers can copy court logos, case numbers, and other details.
If an email or text asks you to make a payment or log in to an account, do not use the link in the message. Contact the court, trustee, creditor, or lawyer using contact information you already know is correct.
The same applies to letters. Be especially careful with any letter that threatens criminal charges or demands payment through Bitcoin, gift cards, or a payment app.
People who are behind on their mortgage may also receive offers from companies promising to stop foreclosure. Some scammers ask for large upfront fees, tell homeowners to stop making mortgage payments, or ask them to transfer the deed to their home.
The U.S. Trustee Program has warned about scams in which operators took homeowners’ money and filed bankruptcy cases in their names without their knowledge.
Do not stop paying your lender, transfer your deed, or send mortgage payments to someone else based only on an unsolicited offer.
You do not have to answer or make a payment while someone is pressuring you. Hang up, close the message, and check the information yourself.
You can:
The FTC also warns about unexpected requests for payment by gift card, cryptocurrency, wire transfer, and similar methods.
Act quickly. Contact your bank, credit card company, payment service, gift card company, cryptocurrency platform, or wire service and explain that you were scammed. Ask whether the payment can be stopped or recovered.
You can report the scam through the Federal Trade Commission’s fraud reporting system. You can also report suspected fraud involving a bankruptcy case to the U.S. Trustee Program.
If you gave the scammer a password, change it immediately. If you share bank or card information, contact the company and watch your accounts for transactions you do not recognize.
A Wisconsin bankruptcy court warns that it does not demand payment over the phone. If someone calls asking for an immediate payment, hang up and contact the court through its official number.
No. Scammers can make a real court, government, or business number appear on your caller ID. Verify unexpected requests using a separate, trusted source.
That does not prove the person is legitimate. Basic bankruptcy case information is generally available through public records.
Be very cautious. The FTC identifies demands for gift cards, cryptocurrency, wire transfers, and similar payment methods as common signs of a scam.
You can report scams to the FTC. You can also report suspected fraud involving the bankruptcy system to the U.S. Trustee Program.
A suspicious call or letter does not require an immediate response. Take a moment to verify who contacted you and why they are asking for money or information.
If you are unsure whether a message about your bankruptcy is legitimate , contact us for a free consultation. We can help you understand what the request means and what steps you should take.
Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.
