Loans > Loan Screens > Bankruptcy and Foreclosure Screen Group > Bankruptcy Screen

Field

Description

Chapter

Mnemonic: BKCHAP

Use this field to indicate the bankruptcy chapter being applied to the customer loan account. Possible choices are bankruptcy chapter 7, 11, 12, or 13.

	Note: To access fields on this tab, you must first make a selection from this field.

See below for more information.

Continue filling out information in the rest of the fields on the Case Information tab. Click <Run Transaction> to run the Bankruptcy Transaction and save this information.

Possible bankruptcy chapters include:

Chapter 7: A court-appointed trustee collects the individual’s assets. The trustee sells the assets for cash and pays the proceeds to the individual’s creditors. Assets that are exempt under federal or state law do not have to be liquidated. Once the Chapter 7 process is final, the filing cannot be repeated for six years.

Chapter 11: This is targeted to larger businesses, but individuals may also use this reorganization plan. Chapter 11 is similar to Chapter 13, but with more requirements. However, if all a debtor needs is a plan to pay off debts, then a Chapter 13 or Chapter 11 is preferable, rather than a Chapter 7, particularly when trying to reestablish their creditworthiness.

Chapter 12: This is a voluntary bankruptcy designed for farmers and fisherman with steady income. However, there are exceptions for farmers and fisherman with seasonal income. This type of bankruptcy allows the debtor to establish a plan to pay off all or part of his debts over an established period of time.

Chapter 13: This is for an individual debtor with a steady source of income. It can also be used by small businesses. Under the Chapter 13 plan, the debtor must settle his debts over a three to five year period. Under Chapter 13, the debtor is allowed to keep his property. At a confirmation hearing, the court either approves or disapproves the plan. There are no time restrictions on when a Chapter 13 can be filed.

Case

Mnemonic: BKCASE

Use this field to indicate the bankruptcy case number for the customer loan account. The bankruptcy court will send you a letter notifying you of the case number.

Date Bankruptcy Filed

Mnemonic: BKFILD

Use this field to indicate the date shown on the bankruptcy notice as the filing date for the customer loan account. When running the Bankruptcy Transaction, this field will default to the current date (if previously left blank). All bankruptcy calculations should be run as of this date.

	Note: This field can be file maintained automatically using bankruptcy options. For more information, see the Action field group.

Notice Received

Mnemonic: BKNRCD

Use this field to indicate the date the bankruptcy notice was received by your institution for the customer loan account.

Foreclosure Pending

Mnemonic: BKFCPN

Use this field to indicate whether the customer loan account was in the foreclosure process when the bankruptcy was filed. Next to the checkbox is the date the bankruptcy notice was received by your institution.

Stay Lifted

Mnemonic: BKSTAD

Use this field to indicate the date the stay was lifted by the bankruptcy court on the customer loan account, if applicable. A lift of stay means the loan can continue as is during bankruptcy proceedings. Your institution can still require payments from the borrower, collect interest, assess late charges, etc.

	Note: If you receive a Lift of Stay notice from the bankruptcy court, you will need to create a repayment plan for the account and possibly undo the bankruptcy petition. Consult your institution's practices as to how to move forward with a Lift of Stay.

Plan Confirmed

Mnemonic: BKCONF

Use this field to indicate the date a proposed bankruptcy plan was confirmed by the court on the customer loan account. Use the Repayment Plan tab to establish a new repayment plan instituted by the bankruptcy court.

Date Reaffirmed

Mnemonic: BKFIRD

Use this field to indicate the date the customer filed his intention to retain collateral and reaffirm debts secured by the collateral.

	Note: This field is file maintained automatically if you select the Reaffirmation radio button in the Action field group.

Date Discharged

Mnemonic: BKCHRD

Use this field to indicate the date the debt on the customer loan account was discharged by the court and the customer was designated no longer liable for the debt.

Date Abandoned

Mnemonic: BKABAD

Use this field to indicate the date the trustee abandoned property from the bankruptcy estate, thereby releasing it to the debtor. See section 544 (a) and (b).

Reinstatement Plan

Mnemonic: BKPLND

Use this field to indicate the date upon which the bankruptcy court has ordered the reinstatement plan to begin on the customer loan account.

Adversary Action Pending

Mnemonic: BKAAPD

Use this field to indicate the date adversarial action was undertaken on the customer loan account.

Total Due as of Filing Date

Mnemonic: N/A

This field displays the total amount due, including late charges and fees, on the customer loan account as of the file date.

The Bankruptcy Transaction calculates the total due as follows:

Principal balance

-	LIP undisbursed

-	Customer balance

+	Accrued interest (date last accrued to bankruptcy file date)

-	Reserve 1 balance

-	Reserve 2 balance

-	Subsidy balance

-	Partial pay if not payment method 3 or 6

-	Miscellaneous

+	Other bankruptcy charges

+	Late charges

+

Loan fees

_______________________

= Total Due

341 Meeting

Mnemonic: BK341M

Use this field to indicate the date of the 341 Meeting, which is a meeting of creditors (Section 341 of the Bankruptcy Code).

Date Dismissed

Mnemonic: BKCAND

Use this field to indicate the date the bankruptcy on the customer loan account was ordered dismissed by a judge.

Date Withdrawn

Mnemonic: BKWTDK

Use this field to indicate the date the bankruptcy on the customer loan account was withdrawn by the filer.

Date Converted

Mnemonic: BKCVDE

Use this field to indicate the date the bankruptcy was converted from one chapter to another on the customer loan account.

This field is automatically entered by the system if the Convert Chapter radio button is selected in the Action field group.

Claim Date

Mnemonic: BKDCLM

Use this field to indicate the claim date of this bankruptcy for the customer loan account. This information should be provided to your institution from the bankruptcy notice sent to you from the bankruptcy courts.

Claim Amount

Mnemonic: BKACLM

Use this field to indicate the amount of the institution’s bankruptcy claim submitted to the court on the customer loan account.

Bankruptcy Cost

Mnemonic: BKACST

This field displays the total cost of the bankruptcy incurred by the institution on the customer loan account. This value is the total of the six bankruptcy cost fields on the Claim Information tab.

Pmt Mthd

Mnemonic: LNPMTH

This field displays the payment method on the customer loan account, as indicated on the Loans > Account Information > Account Detail screen.

Senior Liens

Mnemonic: BITOTS

These fields display the total number of senior liens and the total dollar amount of senior liens on the customer loan account.

Secured Balance

Mnemonic: BKSEBA

Use this field to indicate the balance that is covered by security on the customer loan account.

Unsecured Amount

Mnemonic: BKUSAT

Use this field to indicate the balance that is not covered by security on the customer loan account.

Pcnt Pd Unsec Crdrs Pln

Mnemonic: BKPPUC

Use this field to indicate the percentage of the amount paid to any unsecured creditor on the customer loan account.

This field accepts four digits before the decimal and three digits after the decimal (for example, 9999.999).

Composition

Mnemonic: BKCPSN

Use this field to indicate whether the bankruptcy claim on the customer loan account was settled as a result of a composition of creditors.

Pro Rata

Mnemonic: BKPRTA

Use this field to indicate whether the creditors on the customer loan account agreed to accept partial payment of their amount of the claim to be divided pro rata between them.

Previous Bankruptcy Filings

Mnemonic: BKPBKF

Use this field to indicate the previous chapter number if the bankruptcy on the customer loan account has been converted. This field is automatically entered if the Convert Chapter radio button is selected in the Action field group.

Prinicpal Balance at Bankruptcy

Mnemonic: BKPBAL

Use this field to indicate the principal balance of the loan at the time the bankruptcy was filed on the customer loan account. This field is automatically entered when <Run Transaction> is clicked.

Hold Codes field group

These fields display hold codes associated with the customer loan account, as indicated on the Loans > Account Information > Account Detail screen. The appropriate Hold code is automatically added when the Bankruptcy Transaction is run. Note: If the customer account already has four active Hold Codes, a Bankruptcy transaction cannot be processed until one of the Hold Codes is removed to make room for the bankruptcy hold code.

Repayment Plan field group

See Repayment Plan field group for more information.

Sheduled Hearings field group

Mnemonics: BKHRD1-2, BKHRT1-2

Use these fields to indicate the date and time of the next (or most recent) bankruptcy hearings for the customer loan account. See the help pages linked on the Bankruptcy main screen help to learn more about how bankruptcy filing functions.

Action field group

See Action field group for more information.