{"id":6894,"date":"2018-09-26T21:00:50","date_gmt":"2018-09-27T01:00:50","guid":{"rendered":"http:\/\/www.irasmithinc.com\/blog\/?p=6894"},"modified":"2018-09-27T06:26:55","modified_gmt":"2018-09-27T10:26:55","slug":"proof-of-claim-bankruptcy-canada","status":"publish","type":"post","link":"https:\/\/irasmithinc.com\/blog\/proof-of-claim-bankruptcy-canada\/","title":{"rendered":"PROOF OF CLAIM BANKRUPTCY CANADA: TRUTHFUL CLAIM COMPLETION REQUIRED"},"content":{"rendered":"<div style=\"width: 1920px; max-width: 100%; margin: auto; clear: both;\">\n<div style=\"position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; -moz-box-shadow: 0px 0px 14px 4px #999; -webkit-box-shadow: 0px 0px 14px 4px #999; box-shadow: 0px 0px 14px 4px #999;\"><iframe loading=\"lazy\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; padding: 0px; margin: 0px;\" src=\"\/\/snakeplayer.com\/watch?v=aXJhX3NtaXRoLTE0Mg\" width=\"1920\" height=\"1080\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\n<h2 id='proof-of-claim-bankruptcy-canada-introduction'  id=\"boomdevs_1\"><strong><span style=\"color: #00ccff;\">Proof of claim bankruptcy Canada: \u00a0Introduction<\/span><\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">On September 24, 2018, the <\/span><a href=\"https:\/\/www.justice.gov\/ust\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">US Department of Justice Trustee Program<\/span><\/a><span style=\"font-weight: 400;\"> (USTP) that it reached a $5 million settlement with Citibank. \u00a0As described below, it had to do with the improper preparation and filing of bankruptcy proofs of claim. \u00a0The purpose of this blog is to explain the issues and discuss what it means when completing a <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/consumer-proposal-or-bankruptcy\/\"><b>proof of claim<\/b><\/a> <a href=\"http:\/\/www.irasmithinc.com\/blog\/personal-bankruptcy-canada-faq\/\"><b>bankruptcy Canada<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id='proof-of-claim-bankruptcy-canada-the-settlement-requires-court-approval'  id=\"boomdevs_2\"><strong><span style=\"color: #00ccff;\">Proof of claim bankruptcy Canada: \u00a0The settlement requires Court approval<\/span><\/strong><\/h2>\n<p><a href=\"https:\/\/www.justice.gov\/opa\/pr\/us-trustee-program-reaches-5-million-settlement-citibank-protect-debtors-bankruptcy\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">The USTP<\/span><\/a><span style=\"font-weight: 400;\"> participated in a nationwide negotiation arrangement with Citibank N.A. (Citibank), Department Stores National Bank (DSNB) (jointly Citi), as well as FDS Bank.\u00a0 Citi will pay $5 million to remediate robo-signed evidence of proofs of claim submitted in more than 71,000\u00a0\u00a0<\/span>consumer bankruptcy files involving<span style=\"font-weight: 400;\"> Macy&#8217;s charge card accounts.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Moreover, the suggested agreement has been submitted to the U.S. Bankruptcy Court for the Northern District of Georgia, where it is subject to court authorization. FDS Bank serviced the accounts and retained certain bankruptcy-related services to outside vendors. \u00a0<\/span><\/p>\n<h2 id='proof-of-claim-bankruptcy-canada-the-robo-signing-debacle'  id=\"boomdevs_3\"><strong><span style=\"color: #00ccff;\">Proof of claim bankruptcy Canada: \u00a0The Robo-signing debacle<\/span><\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Between 2012 and 2015, tens of thousands of proofs of claim were filed in bankruptcy files throughout the USA for DSNB. \u00a0These <\/span><a href=\"http:\/\/www.irasmithinc.com\/docs\/poc.pdf\"><span style=\"font-weight: 400;\">proofs of claim<\/span><\/a><span style=\"font-weight: 400;\"> were incorrectly signed, under the penalty of perjury, by employees of an outside vendor who had not reviewed the respective file and proof of claim and\/or lacked knowledge of the contents of the proof of claim. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In some cases, the electronic credentials of the vendor\u2019s staff were used to file proofs of claim without being reviewed by that or any other person. \u00a0These improper practices were identified when Citibank took over the servicing of the accounts in late 2015 from the third parties. Citi self-reported the errors to the USTP.<\/span><\/p>\n<h2 id='proof-of-claim-bankruptcy-canada-the-ustp-comments'  id=\"boomdevs_4\"><strong><span style=\"color: #00ccff;\">Proof of claim bankruptcy Canada: \u00a0The USTP comments<\/span><\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cI am pleased that Citi has acted responsibly by self-reporting these deficient bankruptcy practices and agreeing to remediate affected borrowers to address the errors,\u201d said USTP Director White. \u00a0\u201cI am also encouraged that Citi has instituted internal bankruptcy procedures to ensure that the vendor\u2019s errors should not be repeated. When creditors fail to comply with the bankruptcy laws and rules, they must be held accountable. \u00a0The U.S. Trustee Program remains diligent in its effort to ensure that creditors, as well as debtors who disregard the law, will be held accountable for their actions.\u201d<\/span><\/p>\n<h2 id='proof-of-claim-bankruptcy-canada-how-to-complete-form-31-proof-of-claim'  id=\"boomdevs_5\"><strong><span style=\"color: #00ccff;\">Proof of claim bankruptcy Canada: \u00a0How to complete form 31 proof of claim<\/span><\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">In completing a <\/span><a href=\"http:\/\/www.irasmithinc.com\/docs\/poc.pdf\"><span style=\"font-weight: 400;\">proof of claim form<\/span><\/a><span style=\"font-weight: 400;\">, for either a <\/span><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_the-bankruptcy-process.html\"><span style=\"font-weight: 400;\">personal bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-corporate_corporate-bankruptcy.html\"><span style=\"font-weight: 400;\">corporate bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> in <\/span><a href=\"https:\/\/www.google.com\/maps\/dir\/?api=1&amp;origin=43.80831532297206,-79.54696685040093&amp;destination=ira%20smith%20trustee\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Canada<\/span><\/a><span style=\"font-weight: 400;\">, the person completing the form must state that:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI have knowledge of all the circumstances connected with the claim referred to in this form.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A fully completed <a href=\"http:\/\/www.irasmithinc.com\/blog\/tag\/proof-of-claim-form\/\">proof of claim<\/a> must include details on:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">who the creditor is;<\/span><\/li>\n<li><span style=\"font-weight: 400;\">the amount of the claim;<\/span><\/li>\n<li><span style=\"font-weight: 400;\">what type of claim it is; and<\/span><\/li>\n<li><span style=\"font-weight: 400;\">all contact details.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">A proof of claim needs sufficient documentation attached in order for the Trustee to verify the claim.<\/span><\/p>\n<h2 id='proof-of-claim-bankruptcy-canada-what-will-happen-if-a-false-or-unsubstantiated-claim-is-made'  id=\"boomdevs_6\"><strong><span style=\"color: #00ccff;\">Proof of claim bankruptcy Canada: \u00a0What will happen if a false or unsubstantiated claim is made<\/span><\/strong><\/h2>\n<p><a href=\"http:\/\/laws-lois.justice.gc.ca\/eng\/acts\/B-3\/page-47.html#h-56\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Section 201(1)<\/span><\/a><span style=\"font-weight: 400;\"> of the <\/span><a href=\"http:\/\/laws-lois.justice.gc.ca\/eng\/acts\/B-3\/\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Bankruptcy and Insolvency Act<\/span><\/i><\/a><span style=\"font-weight: 400;\"> (Canada) (<a href=\"http:\/\/www.irasmithinc.com\/blog\/canada-bankruptcies-canadian-bankruptcy-and-insolvency-law\/\">BIA<\/a>) states:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c201 (1) Where a creditor, or a person claiming to be a creditor, in any proceedings under this Act, wilfully and with intent to defraud makes any false claim or any proof, declaration or statement of account that is untrue in any material particular, the creditor or person is guilty of an offence punishable on summary conviction and is liable to a fine not exceeding five thousand dollars, or to imprisonment for a term not exceeding one year, or to both.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The BIA provides for penalties in Canada also. \u00a0A robo-signing exercise like in the Citi case, in my opinion, is an offence under this section of the BIA. \u00a0Any false proof of claim will be disallowed, in whole or in part.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I am not aware of any court decisions in Canada on this section of the BIA. \u00a0Perhaps Canadians as a whole are more truthful than those involved in the Citi matter!<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<h2 id='proof-of-claim-bankruptcy-canada-are-claims-being-made-against-you-or-your-company'  id=\"boomdevs_7\"><strong><span style=\"color: #00ccff;\">Proof of claim bankruptcy Canada: \u00a0Are claims being made against you or your company?<\/span><\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Are you or your company experiencing financial difficulties? \u00a0If yes, call the <\/span><a href=\"http:\/\/www.irasmithinc.com\/\"><span style=\"font-weight: 400;\">Ira Smith<\/span><\/a><span style=\"font-weight: 400;\"> Team. Our approach for each file is to create an end result where <\/span><a href=\"http:\/\/www.irasmithinc.com\"><span style=\"font-weight: 400;\">Starting Over, Starting Now<\/span><\/a><span style=\"font-weight: 400;\"> takes place. \u00a0This starts the minute you are in the door. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The earlier you <\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">contact us<\/span><\/a><span style=\"font-weight: 400;\">, the more options we will have to implement. \u00a0Whether it is a <\/span><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-corporate_restructuring-and-turnarounds.html\"><span style=\"font-weight: 400;\">corporate restructuring<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_consumer-proposal.html\"><span style=\"font-weight: 400;\">personal debt settlement<\/span><\/a><span style=\"font-weight: 400;\"> through a <\/span><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_consumer-proposal.html\"><span style=\"font-weight: 400;\">consumer proposal<\/span><\/a><span style=\"font-weight: 400;\">, the goal is to avoid bankruptcy. \u00a0However, if bankruptcy turns out to be the best option, we can assist there too.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You\u2019re simply one phone call away from taking the <\/span><a href=\"https:\/\/www.google.com\/maps\/dir\/?api=1&amp;origin=43.80831532297206,-79.54696685040093&amp;destination=ira%20smith%20trustee\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">necessary steps<\/span><\/a><span style=\"font-weight: 400;\"> to get back to leading a healthy, balanced hassle-free life, recover your money and move on to the next investment opportunity.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Proof of claim bankruptcy Canada: \u00a0Introduction On September 24, 2018, the US Department of Justice Trustee Program (USTP) that it reached a $5 million settlement with Citibank. \u00a0As described below, it had to do with the improper preparation and filing of bankruptcy proofs of claim. \u00a0The purpose of this blog is to explain the issues [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[5,16,768,34,274,3032,3029,3031,3023,94,863,3033,3022,2370,3034,3024,3025,3027],"class_list":["post-6894","post","type-post","status-publish","format-standard","hentry","category-brandon-blog-post","tag-bankruptcy","tag-bankruptcy-and-insolvency-act","tag-bankruptcy-canada","tag-bankruptcy-trustee","tag-bia","tag-certain-bankruptcy-related-services","tag-citibank-n-a","tag-department-stores-national-bank","tag-fds-bank","tag-insolvency","tag-ira-smith-trustee","tag-proof-of-claim","tag-proof-of-claim-bankruptcy-canada","tag-proof-of-claim-form","tag-robo-signing","tag-u-s-bankruptcy-court-for-the-northern-district-of-georgia","tag-u-s-trustee","tag-us-department-of-justice"],"_links":{"self":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/6894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/comments?post=6894"}],"version-history":[{"count":5,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/6894\/revisions"}],"predecessor-version":[{"id":6922,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/6894\/revisions\/6922"}],"wp:attachment":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/media?parent=6894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/categories?post=6894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/tags?post=6894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}