<prompt> Human: I posted this in rlegaladvice but I think the follow up situation is for you guys unfortunately. When my sister called her bank Chase to report what happened and ask what she should do they escalated it and a supervisor told her it seemed like she was admitting to them that she was committing fraud and that went nowhere. As predicted in the comments, the credit card charges were reversed and shes on the line for 12,000. Shes thinking it might be easiest to just declare bankruptcy but nobody in our family has a clue. Thanks in advance.  <response>: Chase now has a recording of a phone call where a supervisor told her she admitted fraud. Its as simple as your sister owing the bank the 12,000 whether or not she declares bankruptcy. The phone call alone could be sufficient evidence to come after her with criminal charges if she were to declare bankruptcy. While its extremely unlikely almost impossible to get money back in situations like this, her only way to be reimbursed is to apprehend the scammers though that likely wont lead anywhere. She is on the hook for 12,000. Bankruptcy is intended for people with insurmountable debt and an income that provides no possibility of paying it off in a reasonable timeframe. 