Loans > Loan Screens > Bankruptcy and Foreclosure Screen Group > Bankruptcy Detail Screen > Field Descriptions > Actions and Dates field group

Use the Close transaction to completely remove all bankruptcy statuses from the selected customer account(s). A Close transaction is only available if a customer has previously declared bankruptcy. This transaction essentially removes any Bankruptcy statuses that were previously placed on the account. This is a good transaction to run if you erroneously applied a Bankruptcy transaction on an account and it's after monthend.

	Note: If CIM GOLD has been set up to interface with third-party bankruptcy transmissions at your institution, automatic bankruptcy processing is available. See help for the Auto Process File field on the Loans > Bankruptcy and Foreclosure > Bankruptcy Options screen for more information.

Perform this transaction by following the steps below:

1.Select the box next to the name in the top list view table for which you want to discharge the bankruptcy.

2.Select the Close radio button in the Actions and Dates field group, and enter the date the bankruptcy closed in the field to the right.

3.Enter a Close Reason in the field below. Possible reasons are "Closed (Unknown if Dismissed or Discharged)," "Discharge Not Applicable," "Filed In Error," or "Transferred Out."

4.Click <Verify Transaction> to open the Verify Accounts dialog, as shown below.

5.Select the appropriate account(s).

6.Click <Run Transaction>.

verifyaccounts_lbds

Results of a Close Bankruptcy

When a Close Bankruptcy occurs, the following changes occur on the account(s):

•The Consumer Information Indicator field is cleared out. The next monthend's reporting to credit repositories will not contain a CII code (see the Credit Reporting help for more information).

• The "BKRPT" alert status is removed from the account.

•Clears Action Code 94 if the Bankruptcy transaction put it on.

•Clears Hold Codes 4 (Chapter 7, 11, 12) or 5 (Chapter 13).

•Late Charge Code (LNLTCD) is put back from bankruptcy history.

•The Do Not Send Statements for This Account box is unchecked. Note: An option must be set to resume sending statements. See Options below.

•The Advertise box is checked. Note: An option must be set to resume advertising. See Options below.

•The Phone Restriction field will be changed to "0 - No Restrictions" indicating employees can call the borrower. Note: An option must be set to clear the Phone Restriction, as described in Options below.

•The Email Restriction field will be changed to "0 - No Restrictions" indicating employees can call the borrower. Note: An option must be set to clear the Email Restriction, as described in Options below.

Additional Options

You can set up additional options that affect the results of the Close transaction through the Bankruptcy Options screen in the Close Options field group. See the following descriptions:

Close Options Field Group on the Bankruptcy Options Screen

Close Send Statement Mnemonic: BICLSS	When the Bankruptcy transaction is run, the system checks the Do Not Send Statement field. In other words, the account owner no longer receives statements. If this box is checked and then you run the Close transaction, the system will uncheck the Do Not Send Statement field and the account owner will resume receiving statements, if applicable.
Close Advertise Mnemonic: BICLAD	When the Bankruptcy transaction is run, the system checks the Advertise field. In other words, the account owner no longer receives advertisements. If this box is checked and then you run the Close transaction, the system will uncheck the Advertise field and the account owner will resume receiving advertisements, if applicable.
Close Unrestrict Phone Mnemonic: BICLUP	When the Bankruptcy transaction is run, the system flags phone numbers with a restriction of "13 - Contact Attorney Only." However, if this box is checked, and then you run the Close transaction, the system will change the Phone Restriction to "0 - No Restrictions." Therefore, your employees and collectors can continue calling the borrower concerning late or missed payments.
Close Send Email Mnemonic: BICLSE	When the Bankruptcy transaction is run, the system flags email addresses with a restriction of "1 - No Email Allowed." However, if this box is checked, and then you run the Close transaction, the system will change the Email Restriction to "0 - No Restriction." Therefore, your employees and collectors can continue emailing the borrower concerning late or missed payments, advertisements, or notices.