Legal landscape note: This article was originally published in 2015 and describes the law as it stood at that time. New Jersey law changes frequently.
Overview
You filed for bankruptcy, and now someone claiming to be from your attorney's office or the court is on the phone, demanding an immediate wire transfer for a supposedly overdue fee. That call is the hallmark of a sophisticated scam operation targeting filers in New Jersey and nationwide. The National Association of Consumer Bankruptcy Attorneys (NACBA) issued a consumer bulletin warning about these schemes, in which scammers contact recent bankruptcy petitioners posing as attorneys or court officials, demand immediate payment, and threaten dire consequences for nonpayment.
For debtors already facing financial distress in Essex, Hudson, and Passaic counties, falling victim to these scams can derail the fresh start that bankruptcy is designed to provide.
How the Scam Works
Scammers obtain detailed personal information about bankruptcy filers -- including names, addresses, case numbers, and the specific attorneys handling their cases. This level of detail suggests that the scammers have accessed bankruptcy court records, which are public documents available through PACER (Public Access to Court Electronic Records).
The scammers then contact filers by phone or email, claiming to be the debtor's attorney, a paralegal at the attorney's office, or an official from the bankruptcy court. They demand immediate wire transfers or prepaid card payments to resolve a purported issue with the case -- such as a missed filing fee, a problem with the creditor matrix, or an impending dismissal.
The threats are severe and designed to induce panic. Scammers have told victims that their bankruptcy case will be dismissed immediately, that their wages will be garnished, or that they will face criminal charges for fraud if they do not pay immediately.
Official Warnings Issued
NACBA issued a consumer bulletin alerting the public to the scam. Similar warnings were posted by the Office of the Attorney General in New Hampshire and by the Bankruptcy Courts for the Eastern and Western Districts of Virginia. Despite these warnings, incidents continued to be reported, and the fraudulent activity showed signs of spreading to additional states.
NACBA's Legislative Committee planned to approach the Department of Justice to request a deeper investigation into how consumer information was being compromised and to recommend steps to protect the identity of those going through the bankruptcy process.
How to Protect Yourself
If you have filed for bankruptcy in New Jersey -- whether under Chapter 7, Chapter 13, or another chapter -- you should be aware of the following protective measures:
Verify Before Paying
Your bankruptcy attorney will never demand immediate wire transfer or prepaid card payment over the phone. All fees should be documented in your retainer agreement. If you receive a call demanding payment, hang up and contact your attorney directly at the number you have on file.
Court Communications
The United States Bankruptcy Court for the District of New Jersey communicates primarily through written notices sent by mail. Official court notices will include your case number, the judge's name, and the court's address in Camden, Newark, or Trenton. The court will never demand payment by wire transfer or prepaid card.
Report Suspicious Contact
If you are targeted by a bankruptcy scam, report the incident to NACBA at admin@NACBA.org, to the Federal Trade Commission, and to the U.S. Trustee's Office overseeing your case.
The Bankruptcy Process in New Jersey
Bankruptcy provides a lawful mechanism for individuals overwhelmed by debt to obtain relief. Chapter 7 bankruptcy involves liquidation of non-exempt assets in exchange for discharge of most unsecured debts. Chapter 13 bankruptcy allows individuals with regular income to reorganize their debts through a three-to-five-year payment plan. Both chapters are available in the District of New Jersey Bankruptcy Court, which has divisions in Camden, Newark, and Trenton.
Working with a qualified bankruptcy attorney is the most effective way to ensure that the process proceeds correctly and that you are protected from scams targeting vulnerable filers.
Key Takeaways
- Scammers are targeting bankruptcy filers with detailed personal information obtained from public records
- Official bankruptcy communications come by mail, not phone demands for wire transfers
- Your attorney will never demand immediate payment over the phone
- Report scam attempts to NACBA, the FTC, and the U.S. Trustee's Office
- Working with qualified counsel protects you throughout the bankruptcy process
Reviewed by Britt J. Simon, Esq., Managing Partner -- Simon Law Group, LLC -- May 2026
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