Financial recovery is hard work. Filing for bankruptcy is often a deeply personal, stressful process — and for many people, it represents a fresh start.
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Unfortunately, scammers see it as an opportunity.
Across the country, reports are increasing of a new phone scam targeting bankruptcy debtors. These fraudsters are calling individuals who have recently filed for bankruptcy, claiming they owe additional fees, risk case dismissal, or face arrest unless immediate payment is made. It’s calculated. It’s convincing. And it’s causing real harm.
If you or someone you know has filed for bankruptcy, here’s what you need to understand — and how to protect yourself.
Scammers are exploiting publicly available court records. When someone files for bankruptcy, basic case information becomes public record through the federal court system.
Criminals use this information to sound credible.
It feels urgent. It feels official. That’s the point.
The truth? Legitimate bankruptcy courts do not demand payment over the phone.
When someone files for bankruptcy, they are often:
Scammers rely on fear. They know that the thought of a case being dismissed — or worse, legal consequences — can trigger quick decisions.
According to the Federal Trade Commission, government impersonation scams consistently rank among the most reported fraud categories. Fraudsters frequently pose as courts, law enforcement, or federal agencies to intimidate victims into fast payment.
Bankruptcy debtors are simply the newest target group.
Recognizing warning signs quickly can prevent financial loss.
If a caller insists that you must pay “right now” to avoid penalties, that’s a red flag. Courts communicate in writing — not through urgent phone calls demanding same-day payment.
Scammers often ask for:
No legitimate federal court or bankruptcy trustee will request payment this way.
Federal courts do not threaten arrest over unpaid administrative fees. Any communication about your case status will come through official written channels.
If someone uses fear as a tactic, pause. Breathe. Hang up.
Fraudsters can “spoof” phone numbers so it appears the call is coming from a government office. Caller ID alone cannot be trusted.
The Federal Bureau of Investigation warns that spoofed government numbers are a common tactic in impersonation scams.
If you receive a suspicious call about your bankruptcy case:
You are never obligated to stay on the line.
Use the phone number you already have on file — not the one provided by the caller.
Locate your court’s official contact information through the federal judiciary’s website at uscourts.gov.
Do not rely on callback numbers given during the suspicious call.
If you believe you’ve been targeted by a bankruptcy scam:
You can also place a free fraud alert on your credit file through the three major credit bureaus.
Taking action quickly matters.
Financial recovery requires vigilance — especially during vulnerable seasons.
Here are simple but powerful safeguards:
Legitimate court notices are mailed or sent through official legal channels. Be cautious of phone-only communication.
While basic bankruptcy filings are public, never share Social Security numbers, full account details, or personal financial information over the phone.
Scammers win when we act quickly under pressure. Pause. Verify. Confirm independently.
Working with a trusted, local bank gives you a resource when something feels off. If a call doesn’t sit right, call us. We’d rather answer a quick question than see you lose money.
Scams aren’t random. They’re strategic.
Criminals monitor public records, track trends, and adapt quickly. As a community bank, we see firsthand how fraud tactics shift — and we believe education is one of the strongest defenses.
Bankruptcy should represent relief and renewal. Not another setback.
If you’re navigating bankruptcy or rebuilding after financial hardship, you deserve steady support — not intimidation from criminals looking to exploit your situation.
We encourage you to stay cautious, ask questions, and reach out whenever something doesn’t feel right. Our role isn’t just to safeguard accounts. It’s to stand beside our neighbors through every season of life.
If you ever receive a suspicious call about your finances, contact us before you respond. We’re here to help protect what you’re rebuilding — because your fresh start matters to all of us.