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

A discharge releases a bankrupt customer from personal responsibility for specified debts. Use the Discharge transaction if the court has determined that the selected customer is no longer liable for one or more of their loan accounts at your institution.

	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.

Note: Discharged bankruptcies may require that the loan be written off or charged off, depending on how your institution handles discharged debt. Make sure you review your institutions policies on handling discharged bankruptcies as to how to further handle the loan. Also, see the Charge-off transaction (tran code 2022-01) and Write-off transaction (tran code 2510-05) for more information on those transactions.

To discharge a bankruptcy:

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 Discharge radio button in the Actions and Dates field group.

3.Enter the date this bankruptcy was discharged to the right of the radio button.

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 Discharge

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

•The Consumer Information Indicator changes to one of the Bankruptcy Discharge codes (such as, E, F, G, H), depending on the type of bankruptcy chapter that was applied to the account. The account will be reported as such to the credit repositories during monthend Credit Reporting (see the Credit Reporting help for more information).

•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.

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

•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 Discharge transaction through the Bankruptcy Options screen in the Discharge Options field group. See the following descriptions:

Discharge Options Field Group on the Bankruptcy Options Screen

Discharge Send Statement Mnemonic: BIDSSS	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 Discharge transaction, the system will uncheck the Do Not Send Statement field and the account owner will resume receiving statements, if applicable.
Discharge Advertise Mnemonic: BIDSAD	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 Discharge transaction, the system will uncheck the Advertise field and the account owner will resume receiving advertisements, if applicable.
Discharge Unrestrict Phone Mnemonic: BIDSUP	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 Discharge 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.
Discharge Send Email Mnemonic: BIDSSE	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 Discharge 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.