Don’t Be Fooled by False Letter that Says Your Bankruptcy is Dismissed – Your Stay Still in Effect

A Florida debt adjuster sent letters to Chapter 13 bankruptcy debtors in Kansas falsely telling them that their bankruptcy cases were dismissed and to call right away “to discuss the terms of your dismissal.”  What a scam!

These letters from First American Debt Solutions are absolutely FALSE! The bankruptcy cases are NOT DISMISSED! These letters are outrageous!  They frighten vulnerable consumer debtors and cause panic.  Debtors are tricked into thinking they are no longer protected by the bankruptcy stay against collection.

If you receive one of these outrageous letters, call your bankruptcy attorney right away.  She can assure you the letter is false, your case is active and you are still protected by the automatic stay.  She will want the letter and mailer to save as evidence against this company.  This fraudulent activity have been reported to the Chapter 13 Bankruptcy Trustee, the U.S. Trustee and the Office of the Kansas Bank Commissioner.

Here is part of  one letter two clients got this week:

Notice of Debt Relief and Loan Modification

Our records indicated that your Chapter 13 Bankruptcy case number 09-xxxxx has been dismissed.  It is very important that you contact us in the next 24 to 48 hours to discuss the terms of your dismissal.

Since you have been pre-qualified for a debt settlement plan,  you will not be required to pay any out of pocket fees.  Please call your Consumer Debt initiative Representative at First American Debt Solutions to speak with your assigned professional debt settlement negotiator to determine your total debt relief.

Unlicensed debt settlement companies that take your money, take fees, hold your money in escrow, do not pay your debts monthly, and then request settlements with your creditors for less than what is owed are illegal in Kansas.

About Jill Michaux

Jill Michaux is a Kansas bankruptcy attorney. She can be found on Google+. She and her partner, Mark Neis, are Topeka's only board certified consumer bankruptcy law specialists.