Cyberattack Disrupts US Bankruptcy Courts Nationwide
Cyberattack Disrupts US Bankruptcy Courts Nationwide 🚨
A massive cyberattack has disrupted the US Bankruptcy Court’s Bankruptcy Noticing Center (BNC) - the system responsible for sending out official notices about hearings, deadlines, and proceedings for all federal bankruptcy cases nationwide. This outage is the result of an attack on BAE Systems, the third-party aerospace and defense corporation contracted to operate the IT infrastructure and websites of the US notification center.
As a result of the incident, all access to the BNC systems and websites that BAE operates on behalf of the judiciary and the related bankruptcy noticing process are unavailable at this time, the Administrative Office of the US Courts (AO) said in an advisory issued October 15, 2026. While it appears the main federal system itself was not compromised, the impact on official court notices sent both electronically and by US mail could be far-reaching. BNC systems handle all official notices sent to debtors, creditors, attorneys, and other parties. Any disruption could lead to missed deadlines, delayed hearings, and creditor meetings, and financial consequences for parties who fail to receive critical bankruptcy notices on time.
A BAE Systems, Inc. spokesperson confirmed the incident on October 16, 2026, stating: “We are aware of a security incident that is isolated to the BNC system and have taken immediate steps to address it. No other systems have been affected. We are coordinating closely with AOUSC on the response.” The affected websites and services include: bnc.uscourts.gov, bankruptcynotices.uscourts.gov, notices.uscourts.gov, the National Creditor Registration Service, and all production and distribution of bankruptcy notices. It remains unclear whether any US bankruptcy records or sensitive financial information were compromised or stolen from the systems.
As of Friday evening, bankruptcy courts in at least 18 states and the US territory of Puerto Rico have posted notices warning about disruptions tied to the BNC cyberattack. States include Alaska, Arizona, Arkansas, California, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maine, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, and Wisconsin. The impact varies by district, with some courts reporting delays in sending official notices and others forced to implement temporary procedures, reschedule hearings, or delay bankruptcy proceedings altogether. Bankruptcy records include a wealth of sensitive information, from complete financial and creditor histories to intellectual property, corporate restructuring, and legal disputes. Additionally, there is the risk to personally identifiable information (PII) and other private data, such as divorce-related financial obligations, child support, and medical expenses. Non-public documents in the wrong hands could lead to targeted phishing attacks, identity theft, blackmail, and more.