Bankruptcy

General

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

Here you can enter the following information:

• 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  • Dismissed - The bankruptcy was dismissed by the court and is no longer in force.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 debt.
  • Objections to Discharge of Debt - These are similar to objections to discharge
  • 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 i located.
• State - This is the state where the court in which the bankruptcy was filed i located.
• 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.

To track a bankruptcy, fill out all the applicable fields. Here are some references to help you know which fields should be filled out when:

Notification of Bankruptcy Received

• Status
• Who's Filing
• Filing Date

Proof of Bankruptcy Received

• Objection Date Deadline
• Bankruptcy Chapter
• Bankruptcy Petition Status
• Case Number
• Petition Type
• Bankruptcy Process Status
• Objection Status
• Automatic Stay Status
• Proof of Claim Filed Status
• Bankruptcy Notice Received Date
• Proof of Claim Deadline Date
• Bankruptcy District
• City
• State
• 341 - Meeting of Creditors Date

Proof Of Claim Filed

• Proof of Claim Filed Date

Objection Filed

• Objection Status

Bankruptcy Dismissed

• Dismissed Day
• Closed Day
• Bankruptcy Process Status
• Status
• Bankruptcy Petition Status

Bankruptcy Discharged

• Closed Day
• Bankruptcy Process Status
• Status
• Bankruptcy Petition Status