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Written by: Robert DeMarco
The Office of the United States Trustee [“UST”] announced, on Monday, July 15, 2013, the unsealing of a settlement with Citigroup Inc. [“Citi”]. The settlement, approved by the U.S. Bankruptcy Court for the Southern District of New York on March 13, 2012, seeks to protect the personal information of nearly 150,000 consumers in 85 jurisdictions around the country. The settlement is filed in In re Matter of Citi Replacement Filings, No. 11-00405 (Bankr. S.D.N.Y.). In so doing, the settlement agreement was sealed to prevent potential wrongdoers from learning of the breach and looking to victimize the affected Citi customers. On July 11, 2013, the bankruptcy court granted the parties’ motion to unseal the proceedings.
Clifford J. White, III, Director of the Executive Office for the U.S. Trustees, in the July 15, 2013 press release, explained that “[u]nder this unprecedented settlement, nearly 150,000 consumers whose personal information was placed at risk through no fault of their own have received notice of the improper disclosure and can further protect their information through free credit monitoring.” He then continued, explaining “[c]reditors in bankruptcy cases have a legal duty to protect certain personal information of their customers [and this] settlement should remind all major financial institutions and other creditors that violations cannot be tolerated.”
The salient terms of the settlement agreement require Citi to:
1) redact proofs of claim filed in bankruptcy cases nationwide in which the personal information of consumer debtors and third parties, including Social Security numbers and birthdates, had not been properly redacted as required by the bankruptcy rules;
2) notify all affected consumers and offer them one year of free credit monitoring; and
3) Agree to the appointment of an independent auditor in order to review and monitor the accuracy of the correction process.
Consumer debtors who believe they were affected may contact Citigroup Customer Service at 1-866-613-5636. If you are interested in reviewing a complete copy of the UST’s settlement agreement with Citi, click here.
If you are facing financial challenges with Citi or other credit card lenders and/or mortgage holders, bankruptcy may be a viable option, and the lawyers at DeMarco•Mitchell, PLLC, are here for you. Feel free to call or email us for a free initial consultation to discuss your financial condition and how we can help.
DATED: July 17, 2013
After filing a Chapter 7 bankruptcy in the Fresno area, you will be required to attend the "Meeting of Creditors" at the Robert E. Coyle Fresno Federal Court House. The meeting is also referred to as the "341 Meeting."
The Fresno Federal Court House is located at 2500 Tulare Street, Fresno, CA 93721. It's on the corner of "O" Street and Tulare. There are several courthouses in downtown Fresno. It's the one with the tall evergreen trees. I have had a lot of clients go to the wrong one. Here are a couple of pictures of the court house that you want to go into:
The "Meeting of Creditors" is the only real event of importance you are required to attend. (Most of the other meetings take place at my office.) You do need to be prepared for the hearing. Please bring your driver license, social security card, change for parking, and a pen to write with.
Parking is available on the side streets, but the parking spots have 2 hour metering. There are also some nearby parking garages. Free parking is available, but you will need to walk a few blocks after parking. If you are in the mood to walk, there is free parking two hour parking on the streets adjacent to the railroad tracks and Amtrak Station. (Approximately two blocks East of the court house.)
After parking, you will walk up to the courthouse door. The picture to the left is the entrance to the courthouse. As you walk into the courthouse, you will immediately go through security. After security you will be in an attractive hallway.
Below, is a picture of the hallway: 
The Meeting of Creditors takes place in two rooms off the first floor hallway. The two rooms are halfway down the hallway. Here is a picture of the sign just outside the two rooms: 
Once you arrive, go inside the trustee room and look for a questionnaire on a table. It should be in the back of the room. Take the questionnaire and answer the questions outside in the hallway. This is a good place for you and I to meet before the meeting:
Our 341 meeting is set in 1 hour groups. Along with you, there will be nine other folks that have their meeting of creditors at the same time. The good news is that the typical case lasts only 5 minutes long. 99% of the time no creditor shows up. It will likely be me, you and the trustee. The purpose of the meeting is to allow your bankruptcy chapter 7 panel trustee to ask you questions about the documents you filed and any follow up questions she may have on specific assets of yours. I will be there the entire time. Here are three questions that are asked at each meeting of creditors:
- Did you list all of your assets and all of your debts on you petition?
- Did you review, understand and sign your petition?
- Have you sold any assets in the last three years?
While it is never fun to give sworn testimony in a court proceeding, the Meeting of Creditors is nothing to stress over. I know that this is easier said than done. After it is all over, as we are walking out of the courthouse, you will likely be thinking, "No Sweat!"
Ken Jorgensen, California Attorneywww.fresnobankruptcylawgroup.com
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While it is true there are special requirements to meet in order to get student loan debt discharged in bankruptcy, more debtors are being granted elimination of the debt. Recent reports have reviewed a number of previous bankruptcy filings by consumers over the last few years that have included student loan debt, and the outcome [...]
We have all heard about the pending legislation to increase student loan interest rates on new student loans, however, there is an even more important bill pending in Congress which may actually help people with their student loan debt.
The bill is the Fairness for Struggling Students Act of 2013, Senate Bill 114, and it will allow private student loans to be discharged in bankruptcy. Currently, the bankruptcy code excludes both private and government student loans from discharge in bankruptcy except in very rare circumstances. Private student loans are those student loans which are credit based, have a market based interest rate which is not government regulated and are generally considered the sub-prime loans of the college world.
A 2012 Consumer Protection Bureau report found that although private student loans make up about 7% of the student loans originated between 2011 and 2012, however 42% of undergraduates at for-profit colleges used a private student loan, compared to just 14% of undergraduates overall.
Senator Jeff Sessions will hear this bill when it comes before the Senate Judiciary Committee. This week fellow bankruptcy attorney and NACBA member Amy Tanner and I met with a representative from Senator Sessions office who seemed genuinely surprised when we explained the escalating problem with student loans. Senator Sessions needs to hear from you if you have a private student loan even if you would never even consider bankruptcy. Here are the main reasons Senator Sessions needs to hear from you:
1. Citizens are just as important as businesses – The Senator needs to understand that Alabama citizens are struggling to make ends meet in this economy. The Senator is pro-business, however, he needs to understand that individuals drive small businesses and no one is starting a business when they are living paycheck to paycheck.
2. Private student lenders are some of the harshest debt collectors – Tell the Senator your experience with harsh student loan collectors.
3. Private student loans that fund for-profit online universities should be treated just like a credit card. If bankruptcy protection is extended to include private student loans, the lenders will be more willing to work with students to set up favorable payments arrangements.
Call Senator Sessions office today and let him know your student loan experience. I am also including Senator Shelby’s contact information as well.
Senator Jeff Sessions — (202) 224-4124
Senator Richard Shelby — (202) 224-5744
The bankruptcy court doesn’t send you mail unless it’s important.
Sometimes creditors just can’t help themselves from running afoul of the bankruptcy laws.
My client owed $78 to her dermatologist. She had a host of other overdue debts that led her to my office and, after realizing she was over $50,000 in the red she decided to file for bankruptcy.
The Chapter 7 case went smoothly, and she got her discharge about four months after filing.
From there, she went about her business.
Unfortunately, so did the dermatologist.
Collections Ramped Up After The Bankruptcy
After the bankruptcy, the dermatologist continued to send collection letters. My client figured it was a mistake, so she didn’t make a big deal of it.
A few months later, she got served with a lawsuit demanding $575 – $78 for the original bill plus collection costs and finance charges for nonpayment.
This Was A Problem
Under the U.S. Bankruptcy Code, all collection efforts must stop once the case is filed. That’s a temporary solution which is made permanent by the discharge order.
In other words, the collection efforts were illegal. My client didn’t make any noise about it, but once things turned ugly and legal action was commenced, she’d had enough.
By the way, the doctor’s collection agency had been reporting the debt as past due on her credit report as well. Had she checked her reports before the lawsuit was started, she would have known that as well. Also illegal, by the way.
So We Sued The Doctor
When you’ve got a creditor who takes illegal action against you, there’s no real way to protect your rights but to sue. That’s exactly what we did.
As an aside, when we sue for a violation of the bankruptcy court’s discharge order we do so without any upfront fee from our client. Instead, we are compensated at the end of the case by receiving a portion of any money damage award or settlement. So we don’t take these cases lightly – it’s got to have a reasonable chance of success for us to take action.
A Defense Of Stupidity
We served the lawsuit on the doctor, and he didn’t answer it. In fact, it wasn’t until the judge called him into court for contempt did he bother paying attention.
The doctor’s attorneys confirmed that they’d received the bankruptcy court notices but tossed them out. The notices, they thought, somehow didn’t apply to them.
In court, the doctor told the judge he thought his bill wasn’t covered by the bankruptcy because he was outraged that my client would dare to file for bankruptcy in the first place.
As to the reason why he didn’t answer the lawsuit we filed against him? He claimed that it was a bogus lawsuit that wasn’t worth his time or energy.
This Ended Badly For The Doctor
In ruling in my client’s favor, the judge ordered the doctor to pay the following:
- $10,000 to my client; and
- $10,000 to me for legal fees.
This served to underscore to the doctor that bankruptcy court is not an entity to be ignored.
Your Lesson For The Day
The bankruptcy court is a real place – with real powers. When you’re told to do something by the court, you do it.
If you disagree, you respond appropriately.
If you ignore the court, you will lose.
Whether you’re filing for bankruptcy or are a creditor in a bankruptcy case, the rules are the same.
Image credit: K!T
Why You Should Always Read Mail From The Bankruptcy Court was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.
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