Seven years of higher education, and you would think that I would see a bank card scam a mile away. But some unknown scammer almost got away with my debit card information. Almost.
My debit card is, of course, connected to my bank account. I do not use it often as a MasterCard debit card. But on my recent trip to California to visit with my mother (age 90 and doing fine, thank you for asking), I used it at a tiny used book store. Two days later, when I returned home, I received an 'automatic message' phone call stating that "your HSBC Debit Card has been locked down." In retrospect, this was a brilliant strategy; by engaging me via an automatic phone call, I couldn't ask any questions in reply. And to me, it made a certain amount of sense. After a visit to California last year, HSBC fraud control called me just a few hours after I used my card at O'Hare Airport in Chicago, to verify that I authorized that use; I was impressed. So getting a call the day after returning from my last trip, after a rare use of the card in a tiny retail store, seemed to me to make sense.
In any case, the automatic call wanted my 16 digit debit card account number, which I proceeded to provide. I paused when the automatic call asked for the expiration date; but I gave that up as well. I think the automatic call scammers got too greedy by having the call ask for my four digit PIN. Even gullible me thought that was way too much. I hung up, went online to check my account to verify no unexpected transactions the past few days (there were none), and then called HSBC using the phone number on the card. Customer Service shut down my debit card instantly (the service representative apologized for sounding rushed, because she was shutting down the card even while still obtaining information from me.) She said they had received several similar calls that day - January 4.
Interestingly, the automatic call did not come from a restricted phone number; the incoming number showed up on caller ID (with a Baltimore MD area code) and I passed that on to the bank. In any case, the card was shut down and nothing was taken. But, boy, did I come close to creating a complete mess. Even after seven years of higher education.
Bankruptcy Attorney Almost Victim of Debit Card Fraud - Almost
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Syracuse Temporary Bankruptcy Judgeship May Be Extended
One rumor floating around related to the soon-to-be-vacant bankruptcy judgship in Rochester is that the Hon. Margaret Cangilos-Ruiz, currently the bankruptcy judge in the Northern District of New York, Syracuse Division, would be appointed to the Rochester position.
I have absolutely no inside information to substantiate this rumor, but if it is based on the assumption that Judge Cangilos-Ruiz is somehow a 'temporary' judge, with a term soon to expire, this is an incorrect assumption. And a bill now pending in Congress would extend the temporary judgeship in the Northern District for another five years.
Debtor Who Spent Annuity After Filing Bankruptcy Granted Discharge - In re Leone Albany Case
"Something went awry in this case", and indeed it did. This understated line opens the conclusory paragraph of the decision by Judge Robert E. Littlefield Jr. in In re Leone, Bankruptcy Court Northern District of New York (Albany Division) Chapter 7 #05-16603; AP #07-90199; Decision Dec. 9, 2011.)
The debtors refinanced their home, filed bankruptcy, and transferred the refinance funds to an annuity while the petition was being filed. The original chapter 13 trustee did not go after the refinance cash or object to the annuity exemption. When converted to chapter 7, the new trustee objected to exempting the annuity, but by them the money was mostly spent. The chapter 7 trustee sought to deny the debtors a discharge.
But denial of discharge "is the death penalty of bankruptcy", so said Judge Littlefield later in the conclusory paragraph, "a harsh remedy to be reserved for a truly pernicious debtor." The judge declined to impose such a penalty here.
Continue reading Debtor Who Spent Annuity After Filing Bankruptcy Granted Discharge - In re Leone Albany Case
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NY Homestead Exemption Applies to Entire Property Even If Partially Rented Out: In re McCarthy (Syracuse case)
Syracuse bankruptcy judge Margaret Cangilos-Ruiz has ruled that a bankruptcy debtor can claim a homestead exemption on an entire parcel or residential property, even if the debtor only resides in part of the property.
In re Craig Michael McCarthy; WDNY Bk #11-31499; decision Nov. 18, 2011.
Mr. McCarthy owned property containing a two family house, both units of which were rented out, and a smaller building in the back where the debtor both worked and lived. In my review of the docket, it appears that the debtor moved to avoid the judicial lien of a creditor, and the creditor, in turn, objected to the debtor's homestead exemption claim. The creditor argued that the homestead exemption should only be allocated to that portion of the lot that is used as the debtor's residence.
The court ruled that the debtor could exempt the entire parcel.
Retirement Package for Bankruptcy Judges - Full Salary after 14 Years if Over 65
With the impending retirement of Bankruptcy judge John C. Ninfo II of Rochester, it might be interesting to review the retirement package available to bankruptcy judges. Under 28 USC Sect. 377, a bankruptcy judge over the age of 65 who has served at least 14 years is entitled to a lifetime annuity equal to his or her salary upon retirement.
The retired judge is not entitled to the annuity if he or she starts practicing law after retirement. Bankruptcy judges are paid 92% of the salary of United States District Judges (28 USC Sect. 153). A bankruptcy court judge's current salary is $160,080.00.
In the Western District of New York, retiring Judge Ninfo graduated from Georgetown in 1968 and was appointed to the bench in 1992. Buffalo judge Michael J. Kaplan graduated from Columbia University in 1968 and was appointed a bankruptcy judge in 1991. Chief Judge Carl L. Bucki graduated from Cornell in 1974 and was appointed bankruptcy judge in 1993.
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Bankruptcies continue decline to 23 year low; Share a Judge with Syracuse?
Through the end of November, bankrutcy filings in the Western District of New Yor continue to decline, off 20% from the first eleven months of of 2010. Rochester's share of filings are down slightly more - 21%, with Buffalo's filings down 19%. This follows a 10% decline in WDNY filings in 2010, compared to 2009.
While the 2010 decline was unusual compared to most of the country, the 2011 drop reflects a national trend. According to the Wall Street Journal (blog by Sara Murray dated 11/2/2011), consumer bankruptcies for teh first ten months of this year are down nationally nearly 20% from a year earlier.
2,302 bankruptcy cases were filed by the end of November in Rochester. The last time fewer cases than that were filed by the end of November in our division was twenty-three years ago - 1988. Buffalo cases have declined to a level last seen in 1995 (4,287 thru 11/30.)
By my calculations, bankruptcies have also dropped significantly in the Northern District of New York. For example, 2,540 cases had been filed in the Syracuse Division of NDNY thru 11/30/2011, compared to 3,082 in 2010, a drop of 17.6%.
At this level of filing, and with the federal judiciary under pressure to save money, it would be loigical that the Second Circuit Court of Appeals might be holding off appointing a new bankruptcy judge in Rochester. The latest rumor that has come our way is the possibility that Syracuse bankruptcy judge Margaret Cangilos-Ruiz might be transferred to the Rochester judgship.
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Pillar Processing Closes in Buffalo - Fallout of Baum Closure
As I reported two weeks ago, the large-volume foreclosure firm Steven J. Baum PC of Amherst NY is closing. The Buffalo News is now reporting that Pillar Processing LLC, a foreclosure services company affiliated with the Baum office is also shutting its doors. Pillar employees 590 full-time and part-time employees in Amherst.
I wrote an extensive blog last year (October 22, 2010) exploring the unisual arrangement between Pillar and the Baum office. My analysis is that Baum basically spun off the back office foreclosure processing services into a separate non-law firm entity, and then sold it to private investors for something like $60 million. If this is accurate, I would suspect those investors might be somewhat unhappy now.
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Baum Firm to Shut Down
The New York Times (DealBook article by Peter Lattman, 11/21/2011), and The Buffalo News (article 11/21/2011 by Jonathan Epstein) , are reporting that the troubled foreclosure law firm Steven J. Baum PC is shutting down. The firm filed notices with the government of intention to dismiss a mass number of employees. The firm has at least 90 employees.
No official word on the fate of Pillar Processing, the spun-off foreclosure services business affiliated with Baum, but the Buffalo News article reports that similar dismissals are expected there by the end of February.
Until recently, the Baum firm administered 40% of the foreclosures in New York State. As I reported last Thursday, the Baum firm was just recently banned from future foreclosure and bankruptcy work on Fannie Mae and freddie Mac mortgages. The firm was alleged to have ridiculed foreclosed homeowners, as I posted on October 31 this year. A year ago, I posted an extensive blog analyzing the Baum business model and its privatization of ancillary work to its spin-off, Pillar Processing. The firm has been subject to several counterclaims and lawsuits regarding its foreclosure practices, as I also posted a year ago.
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Baum Banned From Fannie Foreclosures
Being picketed by 'Occupy Buffalo' is bad enough. But things just got a whole lot more challenging for the Amherst-based foreclosure law firm of Steven J. Baum PC: Fannie Mae joins Freddie Mac in banning the firm from foreclosure work on their mortgages, effective new business after November 15, 2011 (see Buffalo News article November 16, 2011, by Jonathan Epstein.) The ban extends to bankruptcy wok as well, according to the New York Law Journal.
Fannie Mae issued a list of hundreds of law firms around the country that their mortgage servicers may use for foreclosure work. Eight New York firms are listed, but the Baum office is described as "not eligible for new referrals." No other firm on the 31 page list is described as not eligible for new referrals.
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No News on the Judgeship Situation
The Hon. John C. Ninfo II will retire as bankruptcy judge in Rochester in forty five days, but there is still no news about any replacement. Several knowledgeable sources have reported to me that they have heard nothing. Judge Michael Kaplan of Buffalo is scheduled to preside in Rochester once or twice a week at motions, Chapter 13 plan confirmation hearings, and pre-trial calendars. One source has tild me that Judge Kaplan does not anticipate conducting trials in Rochester; if the vacancy remains open for an extended period of time that assumption may have to be altered. Or maybe trials would be conducted in Buffalo - that would motivate settlements!
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