Discharged Claims Filed in Later Bankruptcy Cases

02 Oct Discharged Claims Filed in Later Bankruptcy Cases

Capital One was caught with its hands in your pockets.According to a press release today, the United States Trustee for Region One, including Massachusetts, filed a complaint against Capital One for filing 5,600 claims in bankruptcy cases for debts which were discharged in earlier bankruptcy cases.

Capital One acknowledged that it was paid about $340,000 on these discharged debts. A proposed settlement, awaiting bankruptcy court approval, will have Capital One hire an independent auditor, selected by the court, to supervise the audit and the return of all wrongfully obtained money to the debtors and their bankruptcy estates, going back to January 1, 2005 and for two years after court approval. This period will be extended if more than 100 wrongful claims are found in one year.

“What’s in your wallet?” Not as much as there should be.

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L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

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