L.K.

1 printed pages contain little extracted OCR body text; searchable legal-body completeness has not been established for those pages.

OCR transcription for search; preserved printed pages are authoritative

Case 1-05-13887-dem Doc14 Filed 07/06/09 Entered 07/06/09 17:04:32

UNITED STATES BANKRUPTCY COURT
FASTERN DISTRICT OF NEW YORK

Inre: Case No.: 1-05-13887-dem

LK. Chapter 7

DECISION AND ORDER REOPENING DEBTOR’S CHAPTER 7
CASE TO SEAL RECORDS AND AMEND TITLE

On March 21, 2005, L.K. (the “debtor”’) filed a voluntary petition for relief under
Chapter 7 of the Bankruptcy Code (the “Chapter 7 case”). On June 15, 2005, the debtor filed a
Complaint commencing an Adversary Proceeding against Educational Credit Management
Corporation, Case No. 1-05-1220-dem (the “Adversary Proceeding”). The Court held a hearing
on the Adversary Proceeding and rendered a Decision and Order on September 21, 2006. ‘The
debtor received a discharge in her Chapter’7 case on July 15, 2005. The Adversary Proceeding
was closed on October 5, 2006, and the Chapter 7 case was closed on November 11, 2006. The
debtor now seeks to reopen her Chapter 7 case to seal her records and amend the title of the
decision in the Adversary Proceeding. On Apni 4, 2009 the debtor filed a Motion to reopen the
Chapter 7 case, seal Court records, and waive the filing fee (“the Application”). On Apnil 21,
2009, the Court held a hearing on the Application. For the reasons stated below, the Court
hereby denies debtor's request to seal all records in the Chapter 7 case and the Adversary
Proceeding. The Court orders that the Chapter 7 case be reopened, and that the caption of the
main case, the caption of the title of the published Decision and Order in the Adversary
Proceeding and all references in both matters to the full name of the debtor be amended to

“L.K.” The Court waives the debtor’ s filing fees for the A pplication.

The Court treats the Application as a motion made under 11 U.S.C. § 107(b)(2) of
the Bankruptcy Code. 11 U.S.C. § 107(b)(2) provides “On request of a party in interest, the
bankruptcy court shall, and on the bankruptcy court’s own motion, the bankruptcy court may...
(2) protect a person with respect to scandalous or defamatory matter contained in a paper filed in
a case under this title.” 	11 U.S.C. § 107(b)(2). Federal Rule of Bankruptcy Procedure 9018
provides the procedure for invoking the court's power under 11 U.S.C. § 107.
A motion under Rule 9018 is left to the sound discretion of the court. Hope on
Behalf of Clark v. Pearson, 38 B.R. 423 (Bankr. M.D. Ga.1984). As a general rule, however,
motions to seal pleadings and other documents are disfavored and “should be entered only when
actually necessary to protect a party from harm.” 	In re Sherman-Noyes & Prairie Apartments
Real Estate Investment Partnership, 59 B.R. 905, 909 (Bankr. N.D. Ill. 1986). “In the Second
Circuit, documents which are part of the court record should not remain under seal absent the
most compelling reasons.” In re Fibermark Inc., 330 B.R. 480, 503-04 (Bankr. D. Vt. 2005)
((citing In re Ionosphere Clubs Inc., 156 B.R. 414, 434 (S.D.N.Y. 1993)). The movant has the
burden of proof to demonstrate the grounds for an exception under § 107(b)(2). In re Chase,
2008 WL 2945997, 6 (Bkrtcy.S.D.N.Y. 2008) (citing In re Food Mgmt. Group, LLC, 359 B.R.
542, 556 (Bankr. S.D.N.Y. 2007)). To meet this burden, the movant “must demonstrate
extraordinary circumstances and compelling need to obtain protection.” Id. (internal citations
omitted).
The debtor argues that the Decision and Order rendered in the Adversary
Proceeding contains extremely personal medical information and is available on-line. The
Decision and Order also contains personal information including the debtor’s address, salary and
2
Case 1-05-13887-dem Doc 14 Filed 07/06/09 Entered 07/06/09 17:04:32

employment history. The debtor believes that the publication of this information will make it
difficult for her to obtain employment.
Included in the decision in debtor’s Adversary Proceeding are diagnoses of severe
depression and psychiatric treatment. The Court finds that this information, along with other
personal information contained in the Adversary Proceeding, though sensitive, does not rise to
the level of “scandalous or defamatory” under 11 U.S.C. § 107(b)(2) to warrant the sealing of all
court records in the Chapter 7 case and the Adversary Proceeding. However, the Court
recognizes that a stigma is attached to mental illness and that the publication of debtor’s full
name will likely be a detriment to debtor’s attempts at future employment. For this reason, the
Court orders that the caption of this Decision and Order, the caption of the Adversary Proceeding
and the Decision and Order in the Adversary Proceeding and all references to the full name of
the debtor in each of those documents to be amended to “L.K.” The Court finds this the most
appropriate remedy under the circumstances.
The debtor’s motion to seal the records in Case No. 1-09-41966-dem and the
Adversary Proceeding, Case No. 1-05-1220-dem, is denied. The Court will order the relief set
forth in the preceding paragraph and issue letters to Lexis Nexis and Westlaw to such effect. Any
fees associated with the filing of this Application are hereby waived.
IT IS SO ORDERED.
Dated: Brooklyn, New York
July 6, 2009
S/ Dennis E. Milton
DENNIS E. MILTON
United States Bankruptcy Judge
3
Case 1-05-13887-dem Doc 14 Filed 07/06/09 Entered 07/06/09 17:04:32

Case 1-05-13887-dem Doc14 Filed 07/06/09 Entered 07/06/09 17:04:32