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I get this complaint all the time:  “My mortgage company is not reporting that I am paying my mortgage payment on time each month because I did not reaffirm their loan.”  
Reaffirmation Agreements are documents that are signed in Chapter 7 with creditors for debts you want to keep. This is typically a home loan, a car loan or a furniture loan.  These loans are secured to the property that people want to keep, and the reaffirmation agreement basically pulls that debt out of the bankruptcy.   The agreement is voluntary, but most folks want to reaffirm the car and mortgage loans.
The problem is, most mortgage companies no longer offer reaffirmation agreements.  My guess is that the banks do not believe the reaffirmations are necessary since bankruptcy cancels the debt but not the mortgage lien.  Regardless of whether a bankruptcy is filed or not, if a person fails to pay the mortgage the bank has the right to foreclose.  Fifteen years ago mortgage companies sent us reaffirmation agreements on virtually every case, but now I rarely see the agreements even offered unless a debtor calls the bank to demand one.
Not reaffirming the mortgage loan creates a big problem when a person tries to refinance their mortgage.  Without a credit report showing that the payments are being made on time it is difficult to refinance.  When interest rates drop everyone wants to refinance their loan, but without proof that the loan is being paid on time this can be difficult. 
How can a person report that they are paying the mortgage on time after the bankruptcy case is closed if a reaffirmation agreement was not signed? 
One solution to this problem is to self-report the mortgage payment, sometimes called alternative credit reporting.  This can be done through organizations like PRBC that allow consumers to provide proof that they are paying mortgages, rent, utility bills, cell phone bills and other bills on time.  The National Credit Reporting Association (NCRA), the National Association of Mortgage Brokers (NAMB), the Mortgage Guaranty Insurance Corporation (MGIC) and Fair Issac (FICO) have agreements with PRBC to help homeowners report  their mortgage payments.  PRBC has reached an agreement with Fair Isaac to provide a FICO Expansion Score that helps lenders approve mortgage applications.
My hope is that we see an expansion on these types of alternative credit reporting options.  There are several benefits to not reaffirming a mortgage loan.  If you become unemployed or sick and cannot make future house payments, the benefit of not reaffirming the mortgage can be significant.  If self-reporting options improve over time, reaffirming a mortgage loan may become a thing of the past.

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:  

1. Did you list all of your assets and all of your debts on you petition?
2. Did you review, understand and sign your petition?
3. 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

Whether you are struggling in getting debt obligations paid such as medical bills, personal loans, credit card debt, mortgage payments, or student loans, chances are you are not alone.  Every year bankruptcy is filed by millions of consumers who are tired of struggling in trying to make ends meet and want a fresh start. As [...]