Navigation:  Teller System > Transactions > Loan Transactions > Loan Transaction Codes > Tran Code 2850-07, Petition Claim Payment

This transaction allows you to make arrearage payments involved with a Chapter 13 bankruptcy. This transaction allows payments to either pre-petition or post-petition arrears. In order to use this transaction, the following actions must happen on the account:

 

•The account must be in Chapter 13 bankruptcy. See the Confirmed By Court Chapter 13 field group help on the Loans > Bankruptcy and Foreclosure > Bankruptcy Detail screen for more information. (Note: Your institution must be using the new Bankruptcy Detail screen. See Bankruptcy Options for more information.)

 

•Bankruptcy arrear amounts must be processed on the account. See the Claim Information dialog help on the Loans > Bankruptcy and Foreclosure > Bankruptcy Detail screen for more information.

 

We suggest that the person at your institution responsible for updating transaction designs set up the transaction to look like the following. See the Transaction Design section in the CIM GOLDTeller User’s Guide for more information.

 

 

Once this payment is made, the system updates the amount for arrearages and displays it in the Fees table on the Loans > Marketing and Collections screen > Delinquent Payments tab, as shown below. This payment must be kept separate from a regular loan payment for reporting purposes. However, for Credit Reporting purposes, any outstanding arrearage amounts are added to the Amount Past Due (Base Field 22) in the Credit Report transmission (FPSRP184). Additionally, if any arrearage payments are made for mortgages, those amounts are included in the year-end 1098 form.

 

 

These are the available prepetition arrearage codes:

 

•240 – Prepetition Income Fees

•241 – Prepetition Receive Fees

•242 – Prepetition Escrow Due

•243 – Prepetition Interest Due

•244 – Prepetition Principal Due

•247 – Post-petition Income Fee

•248 – Post-petition Receive Fee

•249 – Post-petition Interest Due

•250 – Post-petition Escrow Due

•251 – Post-petition Principal Due

 

Note: If you have more than one arrearage code set up on an account, the system automatically applies the payment in a specific order. Once that arrearage has been paid in full, any outstanding money goes to pay off the next arrearage, and so forth. On the Fees table, the payment count will be reflected, as well as the applied amount.