Citi Sanctioned For Bid To 'Reaffirm' Discharged Debt

Law360, New York (January 23, 2018, 6:35 PM EST) -- Citigroup Inc.’s mortgage unit was hit with sanctions Tuesday by a New York bankruptcy court, after the lender attempted to force a Chapter 7 debtor to “reaffirm” $102,000 in debt that had already been wiped out.

Narsiza Eppolito filed for Chapter 7 bankruptcy in 2012 and received a discharge of personal liability for roughly $350,000 in mortgage debt held by CitiMortgage Inc., her largest creditor. Years later, Eppolito sought to strike a deal with the bank that would straighten out other debts and let her keep her house, but Citi asked her to take on a new $102,000 mortgage as part...

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