Disclosing Personal Info in Bankruptcy Claims Leads to Sanctions

A creditor that disclosed debtors’ personal information in bankruptcy claim filings that should have been redacted should be sanctioned, a bankruptcy court in North Carolina held Aug. 31 (In re Branch, 2016 BL 284975, Bankr. E.D.N.C., 14-02379-5-SWH, 8/31/16).

Judge Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina concluded that sanctions were appropriate in two out of three debtors’ cases for failing to redact Social Security numbers and dates of birth in proofs of claim filed in their cases, failing to take remedial action once violations were discovered, and acting deliberately. ...