2018 CHAPTER 13 SYMPOSIUM AGENDA - Albert Russo · 2018 CHAPTER 13 SYMPOSIUM AGENDA ... Patrick K. Schaefer ‐ Founder and Chief Executive, Nationwide TFS, LLC Al Russo – Chapter

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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

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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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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


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


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.


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.



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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(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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(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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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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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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http://www.njb.uscourts.gov/

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Using Trustee Websites

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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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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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Camden: Rec. List

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Camden: Rec. List

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Trenton: CDL

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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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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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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


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


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.


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


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.


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.



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”


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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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


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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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


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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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!


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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• 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.