2018 chapter 13 symposium agenda - albert russo · 2018 chapter 13 symposium agenda ... patrick k....
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2018 CHAPTER 13 SYMPOSIUM AGENDA
TIME ATTORNEY STAFF/PARALEGAL
9:00 ‐9:15 REGISTRATION
9:15‐9:30 OPENING REMARKS
SESSION 1 9:30 – 10:20
CLE Credits: 1 hr.
Ethics qualified
SPECIAL CASES
Moderator: Marie‐Ann Greenberg ‐ Chapter 13 Trustee (Newark)
Panelists: Honorable Stacey L. Meisel Martha Hildebrandt, Esquire (AUST) Sarah Crouch, Esquire (Fitzgerald & Crouch, P.C)
Deceased debtor Power of Attorney Original signatures Civil Enforcement Referrals Preparation of proper Certifications in Support
BREAKOUT SESSION 1
Co‐Moderators: Brian M. Knapp ‐ Chapter 13 Staff Attorney (Newark) Joseph D. Petrolino, Jr ‐ Chapter 13 Staff Attorney (Newark)
Panelists: Sharon Ford ‐ Chapter 13 Paralegal Supervisor (Trenton) Jennie Archer ‐ Chapter 13 Paralegal (Camden)
341 and Confirmation Adjournment Requests 341 documents submission 13 Documents
10:20‐10:30 BREAK
Chief Judge Kathryn Ferguson, Al Russo and Shoshana Schiff
2
TIME ATTORNEY STAFF/PARALEGAL
SESSION 2 10:30‐12:00
CLE Credits: 1.5 hrs.
Ethics Credit: 1 hr.
RULES UPDATE
Moderator: Al Russo ‐ Chapter 13 Trustee (Trenton)
Panelists: Honorable Michael B. Kaplan Allen Gorski, Esquire (Gorski & Knowlton, PC)
Update of new Court Rules Revised Attorney Fee Rule and procedures
o Flat fee vs. hourly fee ‐‐‐what you should tell your client
BREAKOUT SESSION 2
Moderators: Jennie Archer ‐ Chapter 13 Paralegal (Camden)
Panelists: Lauren O’Shea ‐ Chapter 13 Paralegal (Newark) Sharon Ford ‐ Chapter 13 Paralegal Supervisor (Trenton)
Common mistakes Disposable income issues
o I&Jo Means Test
Proper preparation of Scheduleso Schedule D – Identify liens with assets
12:00‐1:15
CLE Credits: 1.0 hr.
LUNCH
Speakers: Patrick K. Schaefer ‐ Founder and Chief Executive, Nationwide TFS, LLC Al Russo – Chapter 13 Trustee (Trenton) Debrah Smith ‐ Director of Administration/IT (Trenton)
TFS – eWage National Data Center update for debtor and creditor attorneys Protect your data
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TIME ATTORNEY STAFF/PARALEGAL
SESSION 3 1:15‐2:05
CLE Credits: 1 hr.
CASE UPDATE (25 minutes) CREDITOR ATTORNEY UPDATE (25 minutes)
Moderator: Honorable Andrew B. Altenburg, Jr. Isabel Balboa ‐ Chapter 13 Trustee (Camden)
Panelists Jane L. McDonald ‐ Chapter 13 Staff Attorney (Camden)
Angela Pattison, Esquire (Powers Kirn)
Reverse Mortgages Foreclosure/Loss Mitigation update
BREAKOUT SESSION 3
Moderator: Sharon Ford ‐ Chapter 13 Paralegal Supervisor (Trenton)
Panelists: Debrah Smith ‐ Director of Administration/IT (Trenton) Jennie Archer – Chapter 13 Paralegal (Camden) Lauren O’Shea ‐ Chapter 13 Paralegal (Newark)
ECF Filing issues Court hearing dates Utilizing Trustee websites
o Disposition list Preparation of Plans and Modified Plans Service issues
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TIME ATTORNEY STAFF/PARALEGAL SESSION 4
2:05‐2:55
CLE Credits: 1 hr.
QUESTION AND ANSWER Judges and Chapter 13 Trustees Panelists: Honorable Kathryn C. Ferguson, Chief Judge Honorable Michael B. Kaplan Honorable Andrew B. Altenburg, Jr. Honorable Stacey L. Meisel Isabel Balboa, Chapter 13 Trustee (Camden) Marie‐Ann Greenberg, Chapter 13 Trustee (Newark) Albert Russo, Chapter 13 Trustee (Trenton)
Chapter 13 Court Procedures Future of Loss Mitigation Program Extension or re‐imposition of the stay pursuant to §362 (c)(3) or (4)
2:55‐3:10
CLOSING REMARKS
SUPPORT STAFF BREAKOUT SESSION #1 – 341a & Confirmation Hearing
Co-Moderators:
Joseph Petrolino, Esq. – Staff Attorney, Marie-Ann Greenberg Standing Trustee, Newark
Brian M. Knapp, Esq. – Staff Attorney, Marie-Ann Greenberg Standing Trustee, Newark
Speakers:
Jennie Archer, Paralegal, Isabel Balboa Standing Trustee, Camden
Sharon Ford, Legal Supervisor, Albert Russo Standing Trustee, Trenton
341A HEARINGS [25 minutes]
• Document Production in advance of hearing and use of 13Documents • Adjournment Requests • What you must bring to the hearing • Pitfalls
CONFIRMATION HEARINGS [25 minutes]
• Honor Roll and Confirming in Advance of Hearing • Adjournment Requests • Modified Plan does not Adjourn Current Hearing • At the Hearing Expectations [Don’t assume you will get an adjournment, be prepared to
stay to argue your case, use of coverage counsel] • Serving plans and modified plans • Post Claim Bar Analysis • Pitfalls • NDC, Epay, TFS
JENNIE P. ARCHER – Paralegal to the Chapter 13 Standing Trustee for the Camden Vicinage since 2009. Ms. Archer received her B.S. in Paralegal Studies from Peirce College. She is a Certified Bankruptcy Assistant as designated by the Association of Bankruptcy Judicial Assistants. Ms. Archer was previously employed as a paralegal for both creditor and debtor firms.
Joseph D. Petrolino, Jr. is a Staff Attorney for Marie-Ann Greenberg, Chapter 13 Standing Trustee for the Newark Vicinage, where he is responsible for preparing cases for and appearances at 341(a) Hearings and Hearings on Confirmation. He reviews and litigates all motions and adversary proceedings on behalf of the Trustee, as well as attorney fee applications. He also supervises and reviews the work of paralegals and case administrators. Admitted to practice in New Jersey and New York, Mr. Petrolino helped develop and implement current BAPCPA procedures for the office, developed content for the Trusteeship's website and Debtor Education Pamphlet, and successfully defended an appeal brought up to the Third Circuit Court of Appeals. He also helped draft several proposed local rules for the Lawyer's Advisory Committee and the Form Chapter 13 Plan used in the District of New Jersey. He is a contributing author to ICLE's New Jersey Bankruptcy Manual, 2nd Edition, and has been a presenter at the Bankruptcy Court's Summer Internship Seminar Program, as well as several ICLE seminars. Mr. Petrolino received his B.A. from Pennsylvania State University and his J.D., magna cum laude, from Touro Law, where he was awarded the American Jurisprudence Award for Academic Excellence: Legal Methods I & II and Corporate Taxation.
Brian Knapp is a Staff Attorney for Marie-Ann Greenberg, Chapter 13 Standing Trustee for the Newark Vicinage, where he is responsible for preparing cases for and appearances at 341(a) Hearings and Hearings on Confirmation. He reviews and litigates all motions and adversary proceedings on behalf of the Trustee, as well as attorney fee applications. Mr. Knapp has worked for the Trusteeship since 2008 and has litigated numerous issues over this time. Mr. Knapp primarily oversees the Chapter 13 case load before Judge Sherwood. Prior to being employed at the Trustee’s office Mr. Knapp worked for a national consumer bankruptcy firm where he handled hundreds of Chapter 7 and 13 matters. Mr. Knapp received his B.A., cum laude, from Pace University and his J.D. from Villanova University School of Law. Mr. Knapp is a member of the Bankruptcy Inn of Court for the District of New Jersey.
SHARON FORD
Legal Supervisor/Senior Paralegal - Trenton
Sharon Ford has worked for three Trustees in the Trenton, New Jersey vicinage since 1991: Robert M. Wood, Judge Michael B. Kaplan and currently Albert Russo where she is currently the Legal Supervisor and Senior Paralegal.
Sharon is involved in all aspects of case preparation for 341 and confirmation hearings and
reviews and resolves inquiries from debtor and creditor attorneys as well as court personnel and pro se debtors. She also assists the Trustee in keeping the Legal Department up to date with New Rules and Trustee policies.
Sharon is a graduate of the Cittone Business School and has completed some course work at
Brookdale Community College.
SUPPORT STAFF BREAKOUT SESSION #2 – Common Mistakes / Disposable Income / Preparation of Schedules Moderator: Jennie Archer, Paralegal, Isabel C. Balboa, Chapter 13 Standing Trustee, Camden Speakers: Lauren O’Shea, Paralegal, Marie-Ann Greenberg, Chapter 13 Standing Trustee, Newark Sharon Ford, Paralegal Supervisor, Al Russo, Chapter 13 Standing Trustee, Trenton Common Mistakes
• Trustee’s Certifications of Default • Communication with Trustee’s offices • Wage orders
Disposable income issues I & J
• Household size • Student loans • Cram downs • School tuition • IRS National Standards • Non-filing spouse or live-in boyfriend/girlfriend’s income
Means test • VA income • Blank deductions • Surrendered property • Attorney fees • Expenses higher than IRS National Standards • Contribution income • Amount of disposable income equals base to unsecured creditors
Proper preparation of Schedules
• Schedule B – items often left blank • Schedule C – 100% of fair market value • Schedule D – identify liens with assets • Schedule G – leases should not be listed on Schedule D • Schedule J – mortgage/rent payment when property is surrendered • Statement of Financial Affairs – costs of credit counseling and/or foreclosure defense /
Gambling losses
JENNIE P. ARCHER – Paralegal to the Chapter 13 Standing Trustee for the Camden Vicinage since 2009. Ms. Archer received her B.S. in Paralegal Studies from Peirce College. She is a Certified Bankruptcy Assistant as designated by the Association of Bankruptcy Judicial Assistants. Ms. Archer was previously employed as a paralegal for both creditor and debtor firms.
Lauren O’Shea – Ms. O’Shea received her M.B.A. from William Paterson University in 2011. She has been a paralegal for Marie-Ann Greenberg, Ch. 13 Standing Trustee since 2007. In her role, she provides both administrative and legal support in coordination with United States Bankruptcy Court for the District of New Jersey, Newark.
SHARON FORD
Legal Supervisor/Senior Paralegal - Trenton
Sharon Ford has worked for three Trustees in the Trenton, New Jersey vicinage since 1991: Robert M. Wood, Judge Michael B. Kaplan and currently Albert Russo where she is currently the Legal Supervisor and Senior Paralegal.
Sharon is involved in all aspects of case preparation for 341 and confirmation hearings and
reviews and resolves inquiries from debtor and creditor attorneys as well as court personnel and pro se debtors. She also assists the Trustee in keeping the Legal Department up to date with New Rules and Trustee policies.
Sharon is a graduate of the Cittone Business School and has completed some course work at
Brookdale Community College.
OFFICE OF THE STANDING CHAPTER 13 TRUSTEE
ALBERT RUSSO Erik D. Collazo, Esq.
David A. Martin, Esq.
Mary A. Krieger, Esq.
Counsel
Standing Chapter 13 Trustee
1 AAA Drive Suite 101
Robbinsville, New Jersey 08691-1803
Voice (609) 587-6888 Facsimile (609) 587-9676
Mailing Address:
CN 4853
Trenton, NJ 08650
For Payments Only:
PO Box 933
Memphis, TN 38101-0933
Chapter 13 Symposium
Breakout Session 3 Speaker Outline
Deb Smith ECF Filing Issues 10 minutes
Jennie Archer Redaction of Documents 5 minutes
Lauren O’Shea Court Hearing Dates 5 minutes
Deb Smith Utilizing Trustee Websites 10 minutes
Jennie Archer Preparation of Plans & Modified Plans 10 minutes
Lauren O’Shea Service Issues 10 minutes
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Chapter 13 Symposium
Breakout Session 3Moderator:
Sharon Ford, Paralegal Supervisor – Trenton
Panelists:
Jennie Archer – Paralegal – Camden
Lauren O’Shea – Paralegal – Newark
Debrah Smith – IT Director – Trenton
Agenda
ECF Filing Issues
Redaction of Documents
Court Hearing Dates
Utilizing Trustee Websites
Preparation of Plans and Modified Plans
Service Issues
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ECF FILING ISSUES
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ECF FILING ISSUES
Use of Incorrect Event Codes
Documents should be filed under the correct event code to ensure proper document routing within the Trustee office
Examples:
Modified Plan After Confirmation filed as Modified Plan Before Confirmation
Motion to Extend the Automatic Stay filed as Motion to Extend Time to File Schedules
Amended Schedules filed with the Plan (these should be separate filings)
Modified Plan should be filed to correct plan deficiencies
If Plan signature pages are omitted, a new Modified Plan should be filed that include the signatures – do not file the signature page as a support document
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ECF FILING ISSUES
Use of Correct Versions of Forms
Use the latest version of forms
Chapter 13 Plan and Motions (9/1/2018)
Disclosure of Chapter 13 Debtor’s Attorney Compensation (8/1/2018)
Certification in Support of Discharge (8/1/2018)
Chapter 13 Debtor’s Attorney Fee Application Cover Sheet (8/1/2018)
Motion for Order Confirming Automatic Stay is Not in Effect (8/1/2018)
Order on Motion to Vacate Dismissal (8/1/2018)
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ECF FILING ISSUESDisclosure of Chapter 13 Debtor’s Attorney Compensation
New mandatory form required in all cases filed on or after 8/1/2018
DO NOT INCLUDE THE OLD NATIONAL FORM
New form should be included with the petition package or missing documents
DO NOT FILE AS A ‘DOCUMENT’ OR ‘SUPPORT DOCUMENT’
In cases converted to Chapter 13 on or after 8/1/2018, the new form and the
Plan must be filed within 14 days of conversion
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ECF FILING ISSUES
Attorney Fee Applications
Attorneys may not use local forms Certification of Debtor’s Counsel
Supporting Supplemental Chapter 13 Fee or Order Granting Supplement
Chapter 13 Fees to apply for fees in cases filed under or converted to Chapter
13 on or after 8/1/2018.
Fee applications for cases filed or converted to Chapter 13 on or after
8/1/2018 must be in compliance with D.N.J. LBR 2016-1
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ECF FILING ISSUESD.N.J. LBR 2016-1Application for Compensation and Reimbursement of Expenses
(a) Compensation on an hourly rate basis. The statement of the services rendered, time expended, expenses incurred, and amounts requested under Bankruptcy Rule 2016 must contain:
(1) for an application for compensation under $10,000:
(A) the date and docket number of the applicant’s order of retention or authorization;
(B) the date and docket number of any administrative fee order providing for interim compensation;
(C) a description of services rendered;
(D) the time spent in 1/10th of an hour increments by date and person, with applicable time sheets attached;
(E) the billing rate for each person who rendered services;
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ECF FILING ISSUESD.N.J. LBR 2016-1Application for Compensation and Reimbursement of Expenses
(F) the total time spent by each person who rendered services;
(G) a list of actual expenses summarized by category; and
(H) a narrative explaining the nature of the work performed and the
results achieved; and any circumstances not apparent from the
description of services or that the applicant seeks to emphasize,
including special employment terms, billing or expense policies,
voluntary reductions, reasons for the use of multiple professional
persons for a particular activity, and reasons for substantial time billed
for a particular activity.
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ECF FILING ISSUESD.N.J. LBR 2016-1Application for Compensation and Reimbursement of Expenses
(2) for an application for compensation of $10,000 or more:
(A) Local Form Fee Application Cover Sheet;
(B) a description of services rendered, by date and person;
(C) the time in 1/10th of an hour increments spent by each person, with
applicable time sheets attached; and
(D) a narrative explaining the nature of the work performed and the
results achieved; and any circumstances not apparent from the
description of services or that the applicant seeks to emphasize,
including special employment terms, billing or expense policies,
voluntary reductions, reasons for the use of multiple professional
persons for a particular activity, and reasons for substantial time billed
for a particular activity.
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ECF FILING ISSUESD.N.J. LBR 2016-1Application for Compensation and Reimbursement of Expenses
RULE 2016-1
http://www.njb.uscourts.gov/sites/default/files/local_rules/2016-1.pdf
CHAPTER 13 DEBTOR’S ATTORNEY FEE APPLICATION COVER SHEET
http://www.njb.uscourts.gov/forms/chapter-13-debtors-attorney-fee-
application-cover-sheet
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ECF FILING ISSUESMotion to Reopen vs. Motion to Vacate Dismissal
Motion to Vacate Dismissal should be filed in a case that has been dismissed,
but is not yet closed
Motion to Reopen should be filed in a case that has been closed
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ECF FILING ISSUES
Amended Schedules
If adding a creditor, a List of Creditors should be included that includes the
parties being added
The following supplemental documents must also be included:
Declaration About an Individual Debtor’s Schedules (106 Declaration)
Updated Summary of Your Assets and Liabilities and Certain Statistical
Information (if applicable) (106 Summary) [Schedules A/B, D, E/F, I and J
ONLY]
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ECF FILING ISSUES
Certification in Support of Discharge
D.N.J. LBR 4002-1
Must be filed within 30 day AFTER the trustee files their Plan Complete letter
Must be fully completed and the signature date must be AFTER the file date
of the trustee’s Plan Complete letter
The court will not issue a discharge if the certification is filed prematurely
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Redaction of Documents
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Redaction of Documents
What & Where to Redact
WHAT TO REDACT
Social Security Numbers
Dates of Birth
Names of Individuals Known to be Minors
Financial Account Numbers
WHERE TO REDACT
Schedule J
Tax Returns
Bank Statements
Pay Stubs
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Court Hearing Dates
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Court Hearing Dates
Review the court’s list of hearing dates and times at www.njb.uscourts.gov
under ‘JUDGE’S INFO’ BEFORE filing your document to be sure you are
requesting the proper date
MANY DOCUMENTS ARE FILED WITH INCORRECT OR NON-EXISTENT DATES
THESE DATES CHANGE
OCCASIONALLY HEARINGS ARE HEARD ON NON-STANDARD DATES
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Using Trustee Websites
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Using Trustee Websites
Announcements
Job Openings
Office Closings (bad weather)
Contact List
Policies / Guidelines / Procedures
Forms
Disbursement Dates
Camden: Rec. List (Recommendation List)
Trenton: CDL (Calendar Disposition List)
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Using Trustee Websites
Rec. List / CDL
Check status of matters on for hearing
Review objections, deficiencies, claim issues and plan payments
Check for missing documents ahead of 341(a) meeting
Check to see if 341(a) meeting will be held
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Using Trustee Websites
Camden: Rec. List
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Using Trustee Websites
Camden: Rec. List
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Using Trustee Websites
Trenton: CDL
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Using Trustee Websites
Trenton: CDL
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Preparation of Plans & Modified
Plans
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Preparation of Plans & Modified Plans
MUST USE THE MOST RECENT REVISED FORM
Incorrect form will result in a Notice of Docketing Error from the court
and require new Plan to be filed using the correct form
If the new form is not filed, the Plan may be denied or case dismissed
DO NOT ALTER FORMS BY CUTTING & PASTING – KEEP STANDARD FORMS INTACT
Modified Plans MUST HAVE PART 9 COMPLETED with explanation as to why
the plan is being modified
Loan modifications must be approved no later than 6 months after
confirmation or as extended per a loss mitigation order. After the 2nd
extension, the debtor must provide proof of efforts made to obtain a loan
modification.
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Preparation of Plans & Modified Plans
Sale or refinance must take place within 18 months of confirmation. After the 2nd extension, the debtor must provide proof of efforts made including providing a copy of the listing agreement and realtor retainer.
A Modified Plan that seeks to reduce plan payments due to a change in circumstances MUST also have an Amended Schedule I & J filed. Current tax returns must be provided to the trustee.
The Plan payment proposed should be calculated to include the Adequate Protection payment plus trustee compensation. (Example: Proposed trustee payment is $100; Adequate Protection payment to be made by trustee is $100; Plan should reflect a payment to the trustee of $200 plus trustee compensation)
A MODIFIED PLAN SHOULD INCLUDE ALL PREVIOUS TERMS THAT SHOULDCONTINUE
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Preparation of Plans & Modified Plans
The attorney fee in the plan should match the Fee Disclosure Statement
All priority and secured claims listed in schedules should be addressed in the
plan
REVIEW THE CLAIMS REGISTER BEFORE YOU FILE YOUR PLAN
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Service Issues
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Service Issues
FDIC INSTITUTION
All Chapter 13 plans with a motion (strip off or lien avoidance) are required to
have separate service
FDIC INSTITUTION/SERVICE REQUIREMENTS
Must be by certified mail
Must have a street address: cannot serve a P. O. Box
Must include: Attention: President, Officer, Managing or General Agent, or
any other agent authorized to receive service of process
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Service Issues
NON-FDIC ENTITY
NON FDIC ENTITY/SERVICE REQUIREMENTS
Regular mail
Must have a street address; cannot serve a P. O. Box (Exception: If listed
on POC)
Must include: Attention: President, Officer, Managing or General Agent, or
any other agent authorized to receive service of process
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Service Issues
Governmental Unit Service Requirements
United States Attorney
Peter Rodino Federal Building
970 Broad Street, Suite 700
Newark, New Jersey 07102
United States Attorney General
United States Department of
Justice
Ben Franklin Station
P.O. Box 683
Washington, DC 20044
FEDERAL AGENCIES:
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Service Issues
Governmental Unit Service Requirements
Correspondence pertaining to
bankruptcy cases:
Internal Revenue Service
P.O. Box 7346
Philadelphia, PA 19101-7346
(replaces P.O. Box 21126; includes
correspondence regarding
prompt determination requests
pursuant to 11 U.S.C. § 505(b)(2))
Overnight mail should be directed to:
Internal Revenue Service
2970 Market Street
Mail Stop 5-Q30.133
Philadelphia, PA 19104-5016
INTERNAL REVENUE SERVICE:
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Service Issues
Governmental Unit Service Requirements
Office of the Attorney General
New Jersey Attorney General
Office
Division of Law
Richard J. Hughes Justice Complex
25 Market Street, P.O. Box 112
Trenton, NJ 08625-0112
Division of Taxation
New Jersey Division of Taxation
Compliance and Enforcement -
Bankruptcy Unit
50 Barrack Street, 9th Floor
P.O. Box 245
Trenton, NJ 08695-0267
In contested matters and adversary proceedings involving the State of New
Jersey, in addition to serving the agency as specified below, the New Jersey
Attorney General must also be served at the following addresses:
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Service Issues
Service is a big issue in Camden. In addition to the list above, the Judges want
us to go one step further. While in Pacer, if you select "Reports", then "List of
Creditors", click "Run Report" and then "View labels", you will get Debtor's mail
matrix. You will see on the attached sample where some creditors have the
letter "p" before their address. According to 11 U.S.C. §342(f)(1) and F.R.B.P.
2002(g)(4), a creditor can provide the Court with their preferred mailing address.
The Court will update the mail matrix, remove the incorrect address, update it
with the preferred address and put the letter "p" in front of it. Our Judges are
checking to make sure that not only are the creditors served in accordance with
Rule 7004, at the address listed on the proof of claim, and on anyone who
entered an appearance on behalf of the creditor, they are also checking to make
sure the creditor is served at their preferred address.
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Thank you for attending!
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11/5/2018
DEBRAH SMITH
Director of Administration / IT - Trenton
Debbie Smith has worked in Chapter 13 Trustee offices in the Trenton, New Jersey
vicinage for over thirty years: first with the late Robert M. Wood, then with now-Judge Michael
Kaplan, and now with Albert Russo. Debbie is currently the Director of Administration and
Director of Information Technology.
Like most IT professionals, Debbie’s roles span many different areas of technology
including database and network administrator, programmer, website designer, and help desk
support, but she focuses on computer and network security. She currently holds GIAC GSEC,
GCIH, and GPEN certifications.
JENNIE P. ARCHER – Paralegal to the Chapter 13 Standing Trustee for the Camden Vicinage since 2009. Ms. Archer received her B.S. in Paralegal Studies from Peirce College. She is a Certified Bankruptcy Assistant as designated by the Association of Bankruptcy Judicial Assistants. Ms. Archer was previously employed as a paralegal for both creditor and debtor firms.
Lauren O’Shea – Ms. O’Shea received her M.B.A. from William Paterson University in 2011. She has been a paralegal for Marie-Ann Greenberg, Ch. 13 Standing Trustee since 2007. In her role, she provides both administrative and legal support in coordination with United States Bankruptcy Court for the District of New Jersey, Newark.
SHARON FORD
Legal Supervisor/Senior Paralegal - Trenton
Sharon Ford has worked for three Trustees in the Trenton, New Jersey vicinage since 1991:
Robert M. Wood, Judge Michael B. Kaplan and currently Albert Russo where she is currently the Legal
Supervisor and Senior Paralegal.
Sharon is involved in all aspects of case preparation for 341 and confirmation hearings and
reviews and resolves inquiries from debtor and creditor attorneys as well as court personnel and pro se
debtors. She also assists the Trustee in keeping the Legal Department up to date with New Rules and
Trustee policies.
Sharon is a graduate of the Cittone Business School and has completed some course work at
Brookdale Community College.
11/8/2018
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SIMPLE WAYS TO PROTECT YOUR DATA
DEBRAH SMITHIT DIRECTOR
OFFICE OF THE STANDING CHAPTER 13 TRUSTEEALBERT RUSSO
AGENDA
• MALWARE: RANSOMWARE
• PHISHING / SPEAR PHISING
• EMAIL HACKING
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MALWAREDEFINED AS: SOFTWARE WRITTEN TO INFECT, HARM,
OR GAIN UNAUTHORIZED ACCESS TO THE HOST SYSTEM
RANSOMWAREDEFINED AS: SOFTWARE THAT PREVENTS A USER FROM ACCESSING THEIR SYSTEM OR DATA FILES AND DEMANDS A RANSOM PAYMENT
TO REGAIN ACCESS
(Examples: WANNACRY • CERBER • PETYA • LOCKY)
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MALWARE: ransomwarewhat is it?3 TYPES OF RANSOMWARE
• SCAREWARE
• Tech support scams
• Web page notifications
• Scares you into thinking you have a virus
• Call the 800 number and give your credit card
• SCREEN LOCKERS
• Locked out of your system usually with a full-size window that looks like it’s from the FBI or US DOJ indicating that illegal activity has been detected on your computer
MALWARE: ransomwarewhat is it?
• ENCRYPTING RANSOMWARE
• Encrypts data files (documents, pictures, videos, music, etc.)
• Demands payment (usually in Bitcoin)
• Promise to provide the key to decrypt files does not always materialize OR decryption doesn’t work
• THIS TYPE OF RANSOMWARE HAS AFFECTED ATTORNEYS IN OUR COMMUNITY
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MALWARE: ransomwarehow did I get it?• MALSPAM: MALICIOUS SPAM
• CONTAINS AN INFECTED EMAIL ATTACHMENT LIKE PDF OR WORD DOCUMENT
• CONTAINS A LINK TO A MALICIOUS WEBSITE
• TRIES TO TRICK THE RECIPIENT INTO OPENING THE ATTACHMENT OR LINK
• MALVERTISING: MALICIOUS ADVERTISING• ABLE TO DISTRIBUTE MALWARE WITH LITTLE TO NO USER INTERATION
• MALVERTISING CAN APPEAR ON LEGIT WESITES
• MALICIOUS AD APPEARS IN A FRAME ON THE PAGE AND CALLS CODE FROM ANOTHER SERVER
• HAPPENS WITHOUT THE USER’S KNOWLEDGE – OFTEN CALLED A DRIVE-BY DOWNLOAD
MALWARE: ransomwarewhy did I get it?• Operating system not patched
• User has administrator privileges
• LACK OF TRAINING
• Inadequate security systems • Antivirus
• Firewall
• Email Filtering
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MALWARE: ransomwarehow do I prevent it? You can’t!
1. EDUCATE USERS: Do not open anything that looks suspicious.
What makes it look suspicious?• Were you expecting it?
• Is it a strange file type (.zip)
• Is it written in proper English?
• Is the spelling correct?
• If you mouse-over (but do not click) the links (in Outlook), is the link valid or does it look weird?
• Is the language threatening? “Urgent action required”
MALWARE: ransomwarehow do I prevent it? You can’t!
2. EMPLOY A SPAM & VIRUS FILTERING SERVICE• Filter emails before they get to your inbox
• Appriver
• EveryCloud
• Solarwinds Mail Assure
• Barracuda Essentials
• Usually have a low per-mailbox monthly fee
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MALWARE: ransomwarehow do I prevent it? You can’t!
3. MAKE SURE YOU HAVE DESKTOP ANTIVIRUS SOFTWARE• Desktop antivirus isn’t a sure way to stay virus free, but it helps
• Norton
• Sophos
• Webroot
MALWARE: ransomwarehow do I prevent it? You can’t!
4. BACK UP YOUR DATA REGULARLY• Keep a copy of your backup off-line (on an encrypted removable drive sitting in a
drawer), but on-site
• Send a copy off-site
• Take a removable drive home (make sure it’s encrypted first)
• Use a cloud service
• Carbonite
• Backblaze
• iDrive
• Mozy
• Test your backup regularly – download a file or two from the cloud service and make sure you can open and read it
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MALWARE: ransomwarehow do I prevent it? You can’t!
5. PATCH / UPDATE WORKSTATIONS & SERVERS• YOU SHOULD NOT BE USING WINDOWS XP! IF YOU ARE, BUY A NEW
COMPUTER ON THE WAY HOME TODAY!
• Apply Windows updates often (don’t wait to patch once a quarter)
• Check for firmware updates on routers at least monthly
• Devise a plan for upgrading your hardware & software to latest versions
• Workstations & servers every 3-5 years
• Firewalls & routers every 3 years
• Microsoft Office every 3 years
MALWARE: ransomwarehow do I prevent it? You can’t!
6. DO NOT ENABLE MACROS IN DOCUMENT ATTACHMENTS• Newer versions of Office will have macros disabled – if you don’t know if you have
macros enabled or not, do a Google search for your version of Office
• If you do have macros disabled and you get a yellow bar at the top of the document that wants you to enable editing, be sure you know the document is from a trusted source before you click that button
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MALWARE: ransomwarehow do I prevent it? You can’t!
7. DO NOT GIVE USER LOGINS ADMINISTRATOR RIGHTS• ALL USER ACCOUNTS SHOULD BE ‘STANDARD’ USERS
• Have an administrator account to be used solely for maintenance & software installations
• NEVER use the administrator account to surf the web, check email, or open documents
• EVEN *I* DON’T USE AN ADMINISTRATOR ACCOUNT FOR DAILY USE!
MALWARE: ransomwarehow do I prevent it? You can’t!
8. IF YOU GET INFECTED AND YOUR FILES ARE ENCRYPTED:• DISCONNECT THE COMPUTER FROM THE NETWORK IMMEDIATELY, then turn it
off
• Order a new computer or have an IT professional install a new hard drive and load a clean copy of Windows on your existing computer – DON’T TRY TO CLEAN THE MALWARE
• CHECK YOUR FILE SERVER FOR ENCRYPTED FILES
• Save the old hard drive (put it in your desk drawer because .. you never know), but do not under any circumstances reuse it!
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MALWARE: ransomwarehow do I prevent it? You can’t!
• Reload your files from the most recent backup, but beware: the backup files in the cloud may be encrypted, depending upon how long you had the ransomware (which is why we keep a backup on-site, but off-line)
• NEVER PAY THE RANSOM
• You keep these bad people in business
• You may not get what’s promised (the key to decrypt or decryption may not work)
PHISHINGDEFINED AS: The fraudulent practice of sending emails purporting
to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card
numbers, or trick individuals into installing malware.
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PHISHING what is it?• Fraudulent attempt to obtain sensitive information such as username, passwords,
credit card details, or install malware by disguising as a trustworthy entity
• Also referred to as SOCIAL ENGINEERING – designed to deceive users
• 80% of malware comes from phishing
• #1 attack vector for malware
SPEAR PHISHING what is it?• Spear phishing is an email or electronic communications scam targeted towards a
specific individual, organization or business. Although often intended to steal data for malicious purposes, cybercriminals may also intend to install malware on a targeted user’s computer.
• You think it’s legit because it’s from someone you know
“Almost every breach you read about happens through spear phishing, and the weak link is the human behind the keyboard. Spear phishing always, always works.” --Anup Ghosh, CEO, Invincea
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PHISHING / SPEAR PHISHINGstatistics• According to PhishMe’s Enterprise Phishing Resiliency and Defense Report,
phishing attempts have grown 65% in the last year.
• According to Wombat Security State of the Phish, 76% of businesses reported being a victim of a phishing attack in the last year.
• According to the Verizon Data Breach Investigations Report, 30% of phishing messages get opened by targeted users and 12% of those users click on the malicious attachment or link.
• According to the SANS Institute, 95% of all attacks on enterprise networks are the result of successful spear phishing.
• According to the Webroot Threat Report, nearly 1.5 million new phishing sites are created each month.
PHISHING / SPEAR PHISHINGstatistics
• HUMANS ARE THE WEAKEST LINK!
• Many, if not all, users are unlikely to be able to spot a phishing email — according to Intel, 97% of people around the world are unable to identify a sophisticated phishing email.
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PHISHING / SPEAR PHISHINGhow do I prevent it? You can’t!1. Use a SPAM and Virus Filtering Service. Emails are blocked at the service and
never sent to the user’s inbox.
2. Educate users. According to PhishMe, susceptibility rates (how susceptible a business is to a phishing attack) are as low as 5% when employees are well-trained, and phishing tests are executed and reported on correctly.
3. Enable 2-Factor authentication. For any site where a login is required, enable a second factor of authentication if available. Then, even if your password is compromised, the hacker can’t get into your account because they do not have the second level of authentication.
PHISHING / SPEAR PHISHINGhow do I prevent it? You can’t!4. Go directly to the site. If you are concerned that you are missing a valid email,
don’t click the link in the email to go to the site. Instead, open your web browser and go to the site to investigate. DO NOT CLICK THE LINK in the email.
5. Act quickly. If you happen to click a link in an email and you enter your username and password on the page that loaded, open another tab in your web browser, go directly to the site, and change your password. Then, change your password for any other sites where you may have used that password. REMEMBER: once a hacker has a valid set of credentials, he can plug them into a program to try those credentials against THOUSANDS or MILLIONS of websites.
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EMAIL HACKINGNO DEFINITION REQUIRED
EMAIL HACKINGwhat is it?• A hacker obtains your email password and logs in to your email account
• Checks the dark web for hacked passwords from other sites
• Your computer has malware on it that’s recording your keystrokes and reporting back to the hacker (a keylogger)
• Gets it via Phishing
Google studied the way in which hackers steal people’s passwords and break into their accounts. In the space of 12 months:
• 778,000 LOGIN CREDENTIALS STOLEN VIA KEYLOGGERS
• 12 MILLION STOLEN VIA PHISHING
• 3.3 BILLION EXPOSED VIA 3RD PARTY DATA BREACHES
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EMAIL HACKINGwhat is it?• HAS HAPPENED 5-6 TIMES THIS YEAR to attorneys in our community
• The hacker sends a bogus email to everyone in your address book• Requesting money
• Attaching malicious file
• Including malicious link
• or worse…
EMAIL HACKINGreal world example1. Debtor emails attorney asking for a payoff
2. Attorney gets payoff letter emailed from trustee and forwards to debtor
3. Attorney’s email account is hacked
4. Debtor replies to attorney asking if the funds can be transferred electronically
5. Hacker poses as attorney – alters payoff letter and creates instructions for a wire transfer (instructions look like they come from trustee) and sends to debtor
6. Debtor wires over $10,000 to a bank in Florida per the instructions
7. Hacker continues to pose as the attorney and communicate with debtor (transcript reveals that English is definitely not the hacker’s first language)
8. Debtor realizes something is awry when he discovers that the attorney is on vacation and the trustee never received the funds
9. Bank account in Florida is promptly emptied and closed
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EMAIL HACKINGhow do I prevent it? You CAN!Use STRONG PASSWORDS!
1. USE 2-FACTOR AUTHENTICATION
2. DO NOT RE-USE PASSWORDS ACROSS MULTIPLE SITES
3. DO NOT USE WORDS THAT ARE EASY TO GUESS (YOUR NAME, YOUR
DOG’S NAME, YOUR BIRTHDATE, YOUR STREET NUMBER,
123456,000000 (Kanye))
4. DO NOT USE WORDS THAT APPEAR IN THE DICTIONARY – INCLUDING
PROPER NAMES
EMAIL HACKINGhow do I prevent it? You CAN!
5. DO NOT USE WORDS AND NUMBERS COMBINED TO MAKE A WORD (C4t, F1r3) – AS FAR AS HACKERS ARE CONCERNED, THOSE WORDS ARE IN THE DICTIONARY TOO
6. MAKE SURE YOUR PASSWORD IS AT LEAST 10 CHARACTERS LONG
7. USE A COMBINATION OF CAPITAL & LOWER CASE LETTERS, NUMBERS, AND SYMBOLS
8. USE DOMAIN EMAIL – don’t use an @gmail or @aol or @yahoo EMAIL ADDRESS -- “Gmail is one of the most popular email services in the world right now. Naturally, this makes it a major target for hackers”
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EMAIL HACKINGhow do I prevent it? You CAN!
9. If your credentials are obtained through a data breach, make sure you change your password on EVERY OTHER WEBSITE!
10. THINK OF A PHRASE AND USE THE FIRST LETTER OF EACH WORD
EXAMPLE PASS PHRASE: My oldest daughter was born on 12/1/2000!
Password: Modwbo1212000!
ALBERT RUSSO, STANDING CHAPTER 13 TRUSTEE
Trenton
Albert Russo has been serving as Standing Chapter 13 Trustee in the District of New
Jersey, Trenton Vicinage, since October, 2006. Mr. Russo was previously in private practice with a concentration in Bankruptcy, Civil
and Criminal Tax controversies, Commercial Litigation, and Estate Planning and Administration. He served as a member of the Private Panel of Bankruptcy Trustees administering Chapter 7 and Chapter 11 Bankruptcies. Mr. Russo was a Senior Trial Attorney with the Office of District Counsel, Internal Revenue Service, Newark, New Jersey, where he represented the Internal Revenue Service in U.S. Tax Court and U.S. Bankruptcy Court.
Mr. Russo is a graduate of St. Peter’s College and Seton Hall University School of Law.
11/5/2018
DEBRAH SMITH
Director of Administration / IT - Trenton
Debbie Smith has worked in Chapter 13 Trustee offices in the Trenton, New Jersey
vicinage for over thirty years: first with the late Robert M. Wood, then with now-Judge Michael
Kaplan, and now with Albert Russo. Debbie is currently the Director of Administration and
Director of Information Technology.
Like most IT professionals, Debbie’s roles span many different areas of technology
including database and network administrator, programmer, website designer, and help desk
support, but she focuses on computer and network security. She currently holds GIAC GSEC,
GCIH, and GPEN certifications.
(888) 729-2413 500 N Broadway, Suite 240 www.TFSBillPay.com (888) 729-1063 Jericho NY 11753 [email protected]
Biography
Patrick K. Schaefer is an executive and attorney from New York. Prior to starting his legal career, Mr. Schaefer was a nationally recognized political operative. In 1995, he was tapped by the Democratic National Committee to revive the struggling New York State Democratic party making him, at the time, the youngest Executive Director to manage the day-to-day operations of the storied organization. He was a frequent commentator on local networks and nationally on Fox and MSNBC. Mr. Schaefer’s career in bankruptcy started 20+ years ago and ultimately led him to be managing partner of one of the largest and most recognized consumer bankruptcy firms in the New York metropolitan area. He was the New York representative to the American Consumer Bankruptcy College (ACBC) and remains a member of the National Association of Consumer Bankruptcy Attorneys (NACBA). In 2008, Mr. Schaefer conceptualized and founded Nationwide TFS, LLC (“TFS”) the first-to-the-market total electronic payment platform designed for the Chapter 13 bankruptcy vertical. He remains in the role of Chief Executive and has guided TFS from its first payment in 2011 to over 1 million transactions annually and 1 billion dollars processed. Mr. Schaefer remains dedicated to Chapter 13 community and continually introduces innovative solutions.