Scam Alert: Con Artists Are Targeting Consumers Going Through Bankruptcy Court Proceedings

The callers claim that you owe money to the court that must be paid right away to avoid arrest hoping you’ll pay up before you have time to check them out

As bankruptcy filings remain at elevated levels many debtors in North Carolina report receiving threatening calls from fraudsters posing as court or law enforcement officials. These impostors allege you missed a hearing owe filing fees or face arrest unless you pay immediately, often demanding gift cards, prepaid debit cards or wire transfers. No court or agency conducts collections this way. Recognizing these tactics and knowing your rights will keep you from losing scarce funds.

The “Pay Now or Else” Tactic

Scammers claim you failed to appear at a bankruptcy hearing or owe delinquent administrative fees. They warn of fines arrest warrants or asset seizure if you don’t settle the balance within hours. Unlike legitimate notices which come in writing through your attorney or the court clerk, these calls rely on fear and urgency to push you into instant payment without verification.

Caller ID Spoofing and Fake Locations

Using readily available spoofing tools fraudsters make your phone display “Wake County Courthouse” “Raleigh PD” or a similar trusted name. They may direct you to meet “in person” at the clerk’s office only to call you again insisting you didn’t arrive on time and must pay by gift card over the phone. Spoofed numbers and false meet-ups create a false sense of legitimacy.

Gift Cards and Prepaid Methods Are Red Flags

No court or government agency in North Carolina accepts gift cards or prepaid debit cards for fees or fines. Once you provide those codes the funds vanish and there is no recourse. Similarly wire transfers are not used for court payments; official disbursements require certified checks money orders or online payment portals linked from the judiciary’s website.

Warning Signs of the Bankruptcy Scam

• Immediate payment demand, legitimate courts mail notices and allow days or weeks to pay.
• Gift card or prepaid card requests, government bodies do not use these methods.
• Spoofed caller ID, look up the displayed number separately rather than trusting the incoming ID.
• Threats of arrest, courts never issue arrest warrants by phone without prior written notice and legal counsel involved.
• Refusal to provide case number, officials always reference your case docket and filing details.

Verifying Legitimate Court Communications

All bankruptcy notices and fee statements are sent by mail or electronically via your attorney. To confirm any call:

• Hang up before providing information
• Call the clerk of court at (919) 856-4752 or visit nccourts.gov for authenticated contact details
• Consult your bankruptcy attorney before making payments or providing personal data

Protections and Reporting

If you’ve been targeted:

• Report the scam to the North Carolina Attorney General’s Consumer Protection Division at (919) 814-5400
• File a complaint with the Federal Trade Commission at reportfraud.ftc.gov
• Notify your phone carrier to block the spoofed number and prevent further calls
• Contact local law enforcement to document the fraudulent activity

Key Takeaways

• No court demands payment by gift card or prepaid debit card
• Official bankruptcy fees are billed in writing and paid via certified check money order or secure online portals
• Verify any unexpected call with your attorney or directly with the clerk’s office before taking action
• Report all scam attempts to protect yourself and others facing bankruptcy

By staying vigilant, verifying calls independently and refusing suspicious payment requests, you safeguard both your finances and your legal rights during an already stressful bankruptcy process.