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Bankruptcy

Updated 6 months ago by Cole

Introduction

LoanPro has some native functionality to help you track bankruptcies on a loan. This is designed to help you track bankruptcies from the time you are first notified until they are dismissed or discharged.

Tracking a Bankruptcy

To track a bankruptcy, navigate to Servicing > Bankruptcy inside a loan. To add new bankruptcy information, click 'Add New'.

On this page, as shown above, you can alter bankruptcy information for the loan. Here are descriptions of each option:

Field

Description

Status

This can be either Active or Inactive. LoanPro will let you track an unlimited number of bankruptcies, so you can keep information about both inactive and active bankruptcies.

Who's Filing

This is a drop-down that will show both borrower and co-borrower. Either can declare bankruptcy, but the consequences to the loan may be different depending on who declares.

Filing Date

This is the date when bankruptcy was filed.

Objection Deadline Date

This is the deadline for you to object to the bankruptcy. An objection is an official filing that must be done through the court listed on the bankruptcy.

Bankruptcy Chapter

This is the bankruptcy chapter. The options include:

  • Chapter 7 (Individual Liquidation)
  • Chapter 9 (Municipalities Reorganization)
  • Chapter 11 (Business Reorganization)
  • Chapter 13 (Individual Reorganization)
  • Chapter 128 (Wisconsin)

Bankruptcy Petition Status

This is a drop-down that will let you track the bankruptcy through the different stages. The options include:

  • Discharged - There is no longer an obligation to pay a qualifying debt, or the bankruptcy plan has been fulfilled.
  • Dismissed - The bankruptcy was dismissed by the court and is no longer in force.
  • Petition Filed - The bankruptcy petition has been filed. This is usually the starting point for a bankruptcy.
  • Plan Confirmed - Bankruptcy repayment plan has been confirmed by the court and is valid and in force.
  • Reaffirmed - Secured debt will be paid according to the original agreement. The borrower will remain in possession of the collateral.

Case Number

The case number for the bankruptcy that is assigned by the court.

Petition Type

Petitions can be filed either by an individual (Single) or by an individual and spouse (Joint).

Bankruptcy Process Status

This is the status of the bankruptcy. The options are:

  • Claim Filed - A claim has been filed for the bankruptcy, but has not yet undergone the legal process to make it valid.
  • Discharged - The obligation to pay a qualifying debt is discharged, or the bankruptcy payment plan has been completed.
  • Dismissed - The bankruptcy was dismissed by the court (most often because the claimant failed to fulfill the terms of the payment plan).
  • Notice Received - Official notice of the filing of a bankruptcy claim has been received by you, the lender.

Objection Status

This is the status of any objection filed to the bankruptcy. The options are:

  • Objections to Claim Filed - These are objections to the original bankruptcy filing.
  • Objections to Discharge - These are objections to the discharge of a debtor's total debt from all creditors.
  • Objections to Discharge of Debt - These are objections to the discharge of a specific debt from a specific creditor.
  • Not Available - This status can be used if you don't know the status of the bankruptcy.

Automatic Stay Status

This is the status of the automatic stay of repossession that is imposed when bankruptcy is filed.

Proof of Claim Filed Status

This field helps you track whether you have proof that a claim has been filed, or that proof is still pending. Proof must be provided for official notification of bankruptcy to be considered received.

Liened Property Status

This is the status of property that may be included in a bankruptcy, which has liens against it.

Bankruptcy Notice Received Date

This is the date on which notice of bankruptcy was received.

Proof of Claim Deadline Date

This is the deadline by which you must file proof of your claim of the borrower's debt.

Proof of Claim Filed Date

This is the date on which proof of your claim of the borrower's debt was filed with the court.

Bankruptcy District

This is the judicial district in which the bankruptcy was filed.

City

This is the city where the court in which the bankruptcy was filed.

State

This is the state where the court in which the bankruptcy was filed.

Closed Reason

This field lets you enter a note about the closing of a bankruptcy on a loan.

341 - Meeting of Creditors Date

This is the date on which you can meet with the trustee of the bankruptcy. This hearing is required by law, but creditors are not required to attend.

Dismissed Day

If the bankruptcy is dismissed, this is the day on which it was dismissed.

When Each Field Should Be Filled Out

Here are some references to help you know which fields should be filled out and when.

Notification of Bankruptcy Received:
  1. Status
  2. Who's Filing
  3. Filing Date
Proof of Bankruptcy Received:
  1. Objection Date Deadline
  2. Bankruptcy Chapter
  3. Bankruptcy Petition Status
  4. Case Number
  5. Petition Type
  6. Bankruptcy Process Status
  7. Objection Status
  8. Automatic Stay Status
  9. Proof of Claim Filed Status
  10. Bankruptcy Notice Received Date
  11. Proof of Claim Deadline Date
  12. Bankruptcy District
  13. City
  14. State
  15. 341 - Meeting of Creditors Date
Proof Of Claim Filed:
  1. Proof of Claim Filed Date
Objection Filed:
  1. Objection Status
Bankruptcy Dismissed:
  1. Dismissed Day
  2. Closed Day
  3. Bankruptcy Process Status
  4. Status
  5. Bankruptcy Petition Status
Bankruptcy Discharged:
  1. Closed Day
  2. Bankruptcy Process Status
  3. Status
  4. Bankruptcy Petition Status

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