We Credit Unions

© Copyright 2011 Thrasher & Heckman, P.A.All Rights Reserved

Firm Services

The Firm provides a wide variety of legal services to our financial institution clients,including traditional litigation and collection services in State and FederalBankruptcy Court as well as on-site legal audit services and on-site training to ensureour clients' procedural and documentary compliance with Federal and State lawsgoverning its internal recovery and loss mitigation efforts. The Firm representsinstitutional clients of all sizes throughout Florida.

We pride ourselves on personal and prompt service and offer all clients secure onlineaccess to all legal matters referred to the Firm via our secure internet site. Thisenables clients to keep abreast of all developments in their matters by viewing thestatus and history of all referred cases and associated document images in real time. There is no additional charge for this service.

Lastly, the Firm does not charge its Credit Union clients for travel time to orfrom their corporate offices no matter where they are located in Florida.

Representative Clients

The Firm serves as counsel to the following Credit Unions who are as diverse in asset size as they aregeographically dispersed. Firm Credit Union clients range is size from our smallest at just $6 million inassets to our largest at roughly $3.9 billion in assets.

American Eagle Credit Union (Tampa/Orlando/Jacksonville)American Airlines Federal Credit Union (Dallas/Miami)Credit Union of Texas (Dallas)FAIRWINDS Credit Union (Orlando)First Florida Credit Union (Jacksonville)FLAG Credit Union (Tallahassee)Florida State University Credit Union (Tallahassee)Florida Commerce Credit Union (Tallahassee)GTE Federal Credit Union (Tampa)Gulf Winds Federal Credit Union (Pensacola)Harvesters Federal Credit Union (Pensacola)Innovations Federal Credit Union (Panama City)Jefferson County Teachers Credit Union (Monticello)JM Associates Federal Credit Union (Jacksonville)Okaloosa County Teachers Federal Credit Union (Crestview)Pen Air Federal Credit Union (Pensacola)Tree Capital Credit Union (Perry)VyStar Credit Union (Jacksonville)

“Law school has been described as a place forthe accumulation of knowledge.....

First-year students bring some in and third-year students who depart take none away. Hence, it accumulates”

–Unknown

Collection Strategies to Avoid Pitfalls& Get Better Results

Ë State Court Topics

Ë Federal Court Topics

State Court Topics

Ë Repossession Notices

Ë Voluntary Surrender Forms

Ë Answers to Writs of Garnishment

Ë Debtors Represented by Counsel

Federal Court Topics

Ë Reaffirmation AgreementsË Cross-Collateral ClausesË Lien “Stripping”Ë “Freezing” Accounts and Right to OffsetË Credit Reporting Requirements & the FCRAË Adversary ProceedingsË Creditor Registration

Repossession Notices Before Sale

Ë Content (See § 679.614, Florida Statutes)

Ë Timing (See § 679.612, Florida Statutes)

Ë Method of Delivery

The Deficiency/Surplus Notice

Ë Content (See § 679.616, Florida Statutes)

Ë Timing (See § 679.616, Florida Statutes)

Ë Method of Delivery

“Computers have enabled people to make more mistakes fasterthan almost any invention in history, with the possibleexception of tequila and hand guns” –Mitch Ratcliffe

Consequences of Mistakes In this Area:

Ë Loss of Right to Deficiency JudgmentË Loss of Credibility with the CourtË Class Action Liability

“Voluntary Surrender” Forms

Ë Waiver of Pre-Sale Notice and WaitingPeriod

Ë Admission of Default

Ë Waiver of Claims Against Credit Union

Ë Disclaimer of Rights to Personal Propertyand “Accessions”

Answers to Writs of Garnishment

Ë Importance of Timeliness of AnswersË Placing Proper Holds on Accounts

See § 77.19 Amount retained by garnishee.—No garnishee who isindebted to or has in his or her possion the money of a person whosemoney or credits may be garnisheed shall retain out of the money morethan double the amount which the writ of garnishment specifies as theamount plaintiff expects to recover or more than double the amount ofthe judgment plaintiff has recovered.

Ë “Protected Amounts” under Federal LawË When to Release HoldsË Attorneys’ Fees and Costs

When is a member “represented” by counsel?

Ë § 559.72(18) Florida Statutes provides that it is an unlawful to : Communicate with a debtor if the person knows that the debtor isrepresented by an attorney with respect to such debt and has knowledgeof, or can readily ascertain, such attorney’s name and address, unless thedebtor’s attorney fails to respond within 30 days to a communicationfrom the person, unless the debtor’s attorney consents to a directcommunication with the debtor, or unless the debtor initiates thecommunication.

Ë § 559.72(18) Florida Statutes defines “communication” as theconveying of information regarding a debt directly or indirectly to anyperson through any medium.

Members “Represented” by Counsel

Federal Court Topics

ËReaffirmation AgreementsËCross-Collateral ClausesËLien “Stripping”Ë“Freezing” Accounts and Right to OffsetËCredit Reporting Requirements & the FCRAËAdversary ProceedingsËCreditor Registration

Reaffirmation Agreements

“There is no exception to the rule that every rule has an exception” –James Thurber

Ë The “60 Day Rule” in Rule 4008, FederalRules of Bankruptcy Procedure, and why it ismeaningless

Ë Motions to Extend the Time Period

Ë Motions to Reopen Chapter 7 Cases

I “Cross-Collateral” Clauses

Ë What are they?Ë What are they good for?

--In a Chapter 7 case--In a Chapter 13 case

Ë “Blowback”--Redemption (Chapter 7) andSurrender (Chapters 7 and 13)

Lien “Stripping” andWhy it is NOT Sexy

Ë What does it mean?Ë The “$1.00 of Equity Rule” (11 U.S.C. §506)Ë Why are First Mortgages Exempt? (11U.S.C. § 1322)Ë How is the value determined?Ë Choosing an appraiser

Administrative Holds a/k/aAccount “Freezes”

Ë What do we mean?Ë Can an account be frozen pre-petition?Ë Can an account be frozen post-petition?

Citizens Bank of Maryland vs. David Strumpf, 116 Sup. Ct. 286 (1995)

Ë How much can the Credit Union hold?Ë Automatic Stay considerations and the rightto offset

Bankrupt Accounts and theFair Credit Reporting Act

Ë Should debts that have been discharged in bankruptcy bereported with a balance still owed and state nothing regarding thebankruptcy, or should they show a zero balance and note that thedebt was discharged in bankruptcy?Ë 11 U.S.C. 524(a)(2) provides, in relevant part: “A discharge in acase under this title ... operates as an injunction against thecommencement or continuation of an action, the employment ofprocess, or an act, to collect, recover or offset any such debt as apersonal liability of the Debtor.”Ë Does reporting a balance owed to a credit reporting agency ona discharged debt violate the discharge injunction?

I Adversary Proceedings

Ë Remember: debts incurred via fraud are NOTDischargeable

Ë Presumptions or “Badges” of Fraud:Ë Debt incurred for luxury goods of more than $550

incurred within 90 days of bankruptcy Ë Cash advances totaling more than $825 incurred

within 70 days of bankruptcyË Using your VISA to pay your bankruptcy attorney

National Creditor Registration Service

Ë What is it?Ë Why have I never heard of it?Ë Where can I get information about it?

Web: (https://ncrs.uscourts.gov/)Phone: (877) 837-3424 (Note: not 1-800)

Ë Why is it important?

The $1,000,000 Repossession Question

You repossess a car and then they filed bankruptcy later thevery same day. Do you have to give the car back?

In Florida, the answer is ___ Yes ___No ___ Maybe

See In re: Kalter, 292 F. 3d 1350 (11th Circuit 2002).

In Georgia, the answer is ___ Yes ___No ___ Maybe___ I’m tired of listening to you, please stop talking

See In re: Rozier, 376 F.3d 1323 (11th Circuit 2004).

The End