Scams involving wire transfers, gift cards and peer-to-peer platforms such as Zelle, CashApp, Venmo and others is on the rise. 

Unlike banking or credit card transactions that were initiated by fraudsters there is no protection in peer-to-peer platforms that rely upon the person initiating the transfer to vet the address before sending.


TO BE CLEAR


If you have a payment to be made to this office, the Trustee will not accept gift cards, Zelle, Venmo or others. 

ONLY checks, cashiers checks or money orders are accepted.  Wire transfers require you to arrange a payment in advance by calling the office number 916-635-1939.

ANYONE saying otherwise is attempting to defraud you and the payment owing to the Bankrutpcy Estate is not going to be compromised by your error.


Other Types of Fraud -

Zombie Debt - this may be debt an aggregator buys from the original lender for pennies on the dollar.

Time-barred debt. You may be contacted about a debt that is beyond the statute of limitations — the length of time during which you can legally be sued by a creditor or debt collector over an unpaid debt. These limits differ based on the type of debt and can vary widely by state, though they generally range from three to 10 years. When a debt is "time-barred," a debt collector may still try to convince you to repay it voluntarily.

Discharged debt. This refers to debt that has been legitimately wiped out through a bankruptcy case.  If the debt was discharged in a prior bankruptcy, sending the Notice of Discharge to the collecter by certified or trackable mail can assist them with recognizing they cannot collect the debt from you.  

Settled debt. A lower payoff on non-secured debt (such as medical or credit-card debt) might have been negotiated with the creditor in exchange for forgiveness of the remaining balance.

How should you respond if you are contacted about a zombie debt? Don't panic, and don't immediately make a payment or provide any personal information. On the other hand, it might not be wise to assume it's a scam and ignore calls or letters from a collection agency.

Start by asking for a debt validation letter, which should include information about the original creditor, the amount of the debt, and when it was incurred. Don't say anything to a debt collector until you have a chance to research the details, verify the debt is really yours, and determine whether it falls within the statute of limitations.

If you confirm that the debt is a mistake, has already been paid, or is expired, send a letter disputing the debt within 30 days (and keep a copy for your records). If it shows up as a delinquency on your credit report, you can also file a dispute with the credit agency.