In this era of growing concerns over privacy and data security,
financial institutions must take affirmative steps to comply with
Rule 9037 of the Federal Rules of Bankruptcy Procedure
("Rule 9037"), which requires that any
entity filing a document in a bankruptcy case (such as a proof of
claim or a motion for relief from the automatic stay) redact all
personal identifying information, including Social Security and
loan account numbers.
Due to growing concerns over identity theft and other data
crimes, the United States Trustee's Office ("USTO"),
a Division of the Department of Justice, has begun independent
audits of past filings of banks and lending institutions to
determine Rule 9037 violations. In situations involving a pattern
of Rule 9037 violations (as few as five offending filings), the
USTO will likely issue a demand letter for the offender to provide
in detail: (i) an explanation as to the circumstances for the
offending filings; (ii) proposed efforts and
