Fake bankruptcy / debt elimination scam

The fake-bankruptcy scam markets debt elimination as if there's a federal program that "discharges" debt without bankruptcy court. Variants include:

• Sovereign citizen "debt discharge" schemes that file fictitious court documents claiming debts are settled.
• Fictional federal programs ("Federal Debt Elimination Trust," "Treasury Discharge") promising to wipe debt for a fee.
• Frivolous bankruptcy filings by unauthorized "petition preparers" who collect fees and file Chapter 7 paperwork — often with errors that result in dismissal.
• Title 26 / UCC "redemption" theory scams that misrepresent obscure legal concepts.

None work. Many result in additional legal exposure for the victim — including criminal charges in extreme cases. Real bankruptcy is a court process requiring a real attorney or an authorized non-lawyer petition preparer.

• Promises to "discharge" debt without going through bankruptcy court.
• Reference to UCC, "redemption theory," "1099-A," "federal trust," "secured party creditor," or similar sovereign-citizen jargon.
• Upfront fee in the thousands.
• The operator isn't a licensed attorney.
• Claims of "secret" laws or programs.
• Promises to remove debts from your credit report immediately.
• Door-to-door or seminar-based marketing.
• Refusal to provide a written contract with cancellation rights.

1. Real bankruptcy requires a real attorney licensed in your state.
2. Look up the operator at your state bar. Unlicensed legal help is a scam at minimum and may be criminally prosecutable practice of law.
3. Talk to a real consumer-bankruptcy attorney. Many offer free initial consultations.
4. For non-bankruptcy options, contact a nonprofit credit counselor at nfcc.org.
5. There is no federal "debt discharge" program outside bankruptcy court.

• Stop paying further fees.
• Talk to a real bankruptcy attorney to assess any damage done by frivolous filings.
• File complaints with the CFPB, FTC, your state AG, and the state bar (if the operator misrepresented as an attorney).
• Check your credit report to see if the operator made unauthorized changes.
• Watch for any legal action against you by creditors who were not actually paid.

• Do not pay anyone claiming to "discharge" debts outside bankruptcy court.
• Do not sign UCC filings, "redemption" paperwork, or sovereign-citizen documents.
• Do not stop paying creditors based on a scammer's advice.
• Do not assume "they're operating in the open, they must be legal."

• FTC: reportfraud.ftc.gov — the broadest US fraud intake; reports flow to thousands of law-enforcement agencies.
• FBI IC3: ic3.gov — the right destination when the scam is internet-enabled (phishing, BEC, romance, crypto).
• CFPB: consumerfinance.gov/complaint — for complaints about banks, money transmitters, payment apps, credit cards, debt collection.
• IdentityTheft.gov — if any identity information (SSN, driver's license, account credentials) was shared.
• Your bank or payment platform. Call the number on the back of your card or use the app's in-product help. Time matters — wires can sometimes be recalled within hours; ACH and Zelle are harder but worth trying.