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

A Dismissal occurs when a debtor has failed to adhere to the terms and conditions of their bankruptcy and the court has allowed your institution to pursue the funds owed. You will receive a notice from the Bankruptcy Courts indicating the bankruptcy has been dismissed, and you can reinstate the terms of the loan.

	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 dismiss the bankruptcy.

2.Select the Dismissal radio button in the Actions and Dates field group.

3.Enter a transaction date in the field 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) in the top list view.

6.Click <Run Transaction>. The customer's bankruptcy status will now be designated as Dismissed.

verifyaccounts_lbds

Reinstatement

A Reinstatement transaction is only available if a customer's bankruptcy has previously been Dismissed. Use a Reinstatement transaction to reverse the status and effects of a Dismissal transaction (the steps to this process are identical to the process explained above, substituting the use of the Reinstatement radio button). The Reinstatement radio button is only available in the Actions and Dates field group if the Display Reaffirmation Dates Only field on the Bankruptcy Options screen is left blank.

Results of a Dismissal

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

•The Consumer Information Indicator changes to one of the Bankruptcy Dismissal codes (such as, I, J, K, L), 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 "BKRPT" alert status is removed from the account.

•Hold Code 4 or 5 (bankruptcy) is cleared. Essentially, the loan is no longer considered bankrupt, because the Bankruptcy Court has dismissed the claim.

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

•Statement Cycle is put back from bankruptcy history.

•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.

When a Reinstatement occurs, these changes are reversed.

Additional Options

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

Dismiss Options Field Group on the Bankruptcy Options Screen

Dismiss Send Statement Mnemonic: BIDISS	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 Dismiss transaction, the system will uncheck the Do Not Send Statement field and the account owner will resume receiving statements, if applicable.
Dismiss Advertise Mnemonic: BIDIAD	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 Dismiss transaction, the system will uncheck the Advertise field and the account owner will resume receiving advertisements, if applicable.
Dismiss Unrestrict Phone Mnemonic: BIDIUP	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 Dismiss 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.
Dimiss Send Email Mnemonic: BIDISE	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 Dismiss 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.