Bankruptcies not only disrupt revenue, but impose a significant compliance burden, with credit providers needing to retrieve documents, verify court records, adjust account terms, and alter their communications to remain compliant.

That’s why LoanPro provides clients with a comprehensive set of bankruptcy management tools through our partner BankruptcyWatch.

• Scrub historical data and perform ongoing monitoring, retrieving real-time updates on case statuses.
• Seamlessly connect BankruptcyWatch to LoanPro through our API, automatically recording when the bankruptcy’s creation and any updates and litigation dates to maintain a complete audit trail.
• Generate and file court documents, and leverage Public Access to Court Electronic Records (PACER) document handling for seamless retrieval, storage, and parsing of court records. Moreover, its PACER Replacer simplifies interactions with the PACER system.
• Track pertinent legal proceedings and promptly respond through Advanced Docket Monitoring, built on proprietary bankruptcy ontology and machine learning.

Sign up and configuration

Before using this integration, LoanPro clients will need to contract with BankruptcyWatch and have the process configured in LMS. Reach out to your normal LoanPro contact, and they’ll be able to both put you in touch with BankruptcyWatch and kick off the configuration process.

Verification process

The details will vary depending on your configuration preferences, but in any case, the process will go something like this:

1. An agent or automation triggers a check. If you’re automating the process with ongoing monitoring, the Automation Engine or Quick Actions can be configured to check accounts on a regular cadence. (You can even specify that borrowers in a certain group, like those with riskier credit histories, can be checked more often.) Ad hoc verifications can be streamlined with Agent Walkthroughs or Quick Actions that guide agents through the UI.
2. LoanPro and BankrutpcyWatch check the borrower against public court records. Regardless of what triggered the verification, BankruptcyWatch will search public court records using the borrower's information. The results of that search (either a positive match or no) are automatically sent back to LMS.
3. The borrower is updated in LoanPro. If a matching bankruptcy is found, LoanPro will receive copies of court records and from the PACER system. BankruptcyWatch can then update several areas of the account. A note will be added to the borrower explaining that they have filed bankruptcy, and the record will be saved as a document. Actions and Results and any relevant Custom Fields can also be updated. If no matching bankruptcy case is found, BankruptcyWatch can use those same tools to note that the search didn’t find an active case.
4. LoanPro performs any other automations connected to the check. Depending on your business logic, you may have other steps you’d like to perform in the case of a verified bankruptcy, like canceling AutoPays and collections communications.

By leveraging LoanPro's partnership with BankruptcyWatch, you can ensure accurate portfolio management and compliance all while maintaining operational efficiency.