Creditor Demanding Payment

Scammers have a few new tricks up their sleeves which now include a scheme designed to defraud Chapter 13 bankruptcy debtors.

How The Scam Works

Chapter 13 bankruptcy debtors are sent a letter on very “official” looking letterhead titled “Notification of Debt Relief and Loan Modification” and it goes on to say that the debtor’s Chapter 13 bankruptcy case has been dismissed and that they need to contact the company who sent the letter within 24 to 48 hours to discuss the bankruptcy dismissal.  This letter will be very convincing and may even include the bankruptcy debtor’s case number.  Don’t allow this deceptive letter to fool you, if your bankruptcy case was dismissed you would be notified by the court and/or your bankruptcy attorney.  Some unscrupulous debt settlement companies are using this type of letter to get the attention of bankruptcy debtors with active (open) Chapter 13 bankruptcy cases.  The debt settlement companies who use these types of tactics want to trick a bankruptcy debtor into calling them and then convince them to voluntarily close their Chapter 13 bankruptcy case and use their debt settlement company instead.  If the bankruptcy debtors fall for this scam they could find themselves out of thousands of dollars and with creditors hot on their heels in search of repayment.  Remember, only bankruptcy can stop the collections actions of creditors.  When you close your Chapter 13 bankruptcy case your creditors will have the power to pursue you for payment.  And many creditors may become even more aggressive than before. Not only that, but once you close you bankruptcy case many creditors may expedite actions such as lawsuits and wage garnishments .  Also, creditors are not required to work with debt settlement companies and many have outright refused to consider any debt settlement offers. Remember, debt settlement companies don’t have the power to stop creditors from suing you or garnishing your wages, only bankruptcy has the power to stop creditors.