News & Insights

New Phone Scam Targeting Bankruptcy Debtors: What You Need to Know

Written by Bill Rieger | Feb 24, 2026 3:00:00 PM

Financial recovery is hard work. Filing for bankruptcy is often a deeply personal, stressful process — and for many people, it represents a fresh start.


Related Page: The Top Scams and Fraud Threats to Watch for in 2026 (and How to Protect Yourself)


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.

How the Bankruptcy Phone Scam Works

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.

Here’s what typically happens:

  • You receive a call from someone claiming to represent a “federal bankruptcy office,” “court processing center,” or even your attorney’s office.
  • They reference your actual bankruptcy case number.
  • They claim you owe an unpaid filing fee or administrative cost.
  • They pressure you to pay immediately via wire transfer, prepaid debit card, gift cards, or cryptocurrency.
  • They threaten case dismissal, wage garnishment, or even arrest if you don’t comply.

It feels urgent. It feels official. That’s the point.

The truth? Legitimate bankruptcy courts do not demand payment over the phone.

 

Why Bankruptcy Debtors Are Being Targeted

When someone files for bankruptcy, they are often:

  • Emotionally vulnerable
  • Focused on resolving financial stress
  • Worried about making mistakes

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.

 

Red Flags of a Bankruptcy Phone Scam

Recognizing warning signs quickly can prevent financial loss.

1. Demands for Immediate Payment

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.

2. Requests for Unusual Payment Methods

Scammers often ask for:

  • Gift cards
  • Wire transfers
  • Cryptocurrency
  • Prepaid debit cards

No legitimate federal court or bankruptcy trustee will request payment this way.

3. Threats of Arrest or Case Dismissal

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.

4. Caller ID Spoofing

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.

 

How to Verify a Legitimate Bankruptcy Inquiry

If you receive a suspicious call about your bankruptcy case:

Step 1: Hang Up

You are never obligated to stay on the line.

Step 2: Contact Your Bankruptcy Attorney Directly

Use the phone number you already have on file — not the one provided by the caller.

Step 3: Contact the Bankruptcy Court

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.

 

What To Do If You Already Paid

If you believe you’ve been targeted by a bankruptcy scam:

  1. Contact your bank immediately. The sooner fraud is reported, the greater the chance of limiting loss.
  2. Report the scam to the FTC.
  3. File a complaint with the FBI’s Internet Crime Complaint Center.
  4. Monitor your accounts and credit reports closely.

You can also place a free fraud alert on your credit file through the three major credit bureaus.

Taking action quickly matters.

 

How to Protect Yourself from Bankruptcy Scams

Financial recovery requires vigilance — especially during vulnerable seasons.

Here are simple but powerful safeguards:

Keep Communication in Writing

Legitimate court notices are mailed or sent through official legal channels. Be cautious of phone-only communication.

Guard Your Case Information

While basic bankruptcy filings are public, never share Social Security numbers, full account details, or personal financial information over the phone.

Slow Down Decisions

Scammers win when we act quickly under pressure. Pause. Verify. Confirm independently.

Stay Connected to Trusted Financial Partners

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.

The Bigger Picture: Fraud Is Evolving

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.

 

Final Word from Your Community Bank

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.