Bankruptcy and Legal Information

Lending Lending Bankruptcy and Legal Information

This document provides technical guidance for users of the FLEX system on how to enter, store, and access bankruptcy and legal information pertaining to credit union accounts. This functionality is crucial for managing accounts undergoing bankruptcy or legal proceedings.

1. Overview

The “Bankruptcy and Legal Information” module within the FLEX system enables credit unions to:

  • Enter and store detailed information related to bankruptcy filings or other legal actions.
  • Access this information via Transaction Entry/Inquiry and Collection Maintenance.

2. Accessing the Module

The “Bankruptcy and Legal Information” module is located under the Collections category within the FLEX Main Menu.

  • Navigation Path: FLEX Main Menu > Collections > Bankruptcy and Legal Information

3. Bankruptcy/Legal Listing Screen

Upon accessing the module, the “Bankruptcy/Legal Listing” screen displays accounts that currently have bankruptcy or legal information entered.

3.1. Screen Elements

  • Account Search Box: Enter an account number to search for a specific account.
  • Bankruptcy/Legal Listing Table: Displays existing records with columns for:
    • Account
    • Suffix
    • Name
    • Date Filed
    • Chapter
    • 341 Meeting
    • Reaffirmation
    • Discharged
    • Dismissed
    • Garnished
    • Closed
    • Settled
  • Action Buttons:
    • Refresh: Updates the listing.
    • Add: Initiates the process to add new bankruptcy and legal information for an account.
    • Copy: (Functionality not detailed in provided document)
    • Bill: (Functionality not detailed in the provided document)
    • Delete: (Functionality not detailed in provided document)

4. Add/Edit Bankruptcy and Legal Information Screen

Clicking “Add” on the listing screen or selecting an existing entry for editing opens the “Edit Bankruptcy and Legal Information” screen. This screen is divided into a top panel and three main tabs: Legal, Attorney, and Bankruptcy.

4.1. Top Panel (Applies to All Tabs)

The top panel provides key identifying information and status indicators for the account.

  • Account Bankrupt (Checkbox):
    • Check this box to mark the member account as a bankrupt account in Transaction Entry.
  • Case Number (Text Field):
    • Enter the bankruptcy case number assigned by the court.
  • Asset Case (Checkbox):
    • Check this box to indicate if the account and suffix are filed as a Chapter 7 asset case.
  • Current Balance (Display Only):
    • Displays the current balance (N/A in example).
  • Charged Off Balance (Display Only):
    • Displays the charged-off balance (N/A in example).
  • Action Buttons:
    • Save: Saves all entered information.
    • Lock: (Functionality not detailed in provided document)
    • Refresh: Refreshes the screen data.

4.2. Legal Tab

This tab captures general legal and member-related information. The only required field on this tab is the account number.

  • Member Info Section:
    • Account (Text Field): Enter the account number.
    • Suffix (Dropdown/Text Field): Enter the account suffix, if applicable.
    • Home Phone (Text Field): Enter the member’s home phone number.
    • Work Phone (Text Field): Enter the member’s work phone number.
    • Cell Phone (Text Field): Enter the member’s cell phone number.
  • Employer Info Section:
    • Employer Name (Text Field): Displays the employer name if listed in the Address Maintenance Employer Tab.
    • Contact Phone (Text Field): Displays the employer contact phone number if listed in the Address Maintenance Employer Tab.
  • Legal Info Section:
    • Judgment Date (Date Picker): Enter the date of judgment.
    • Garnishment Date (Date Picker): Enter the date of garnishment.
    • Settlement Amount (Text Field): Enter the settlement amount.
    • Settlement Date (Date Picker): Enter the settlement date.
    • Return Date (Date Picker): Enter the return date.
    • Closed Date (Date Picker): Enter the closed date.
  • Trustee Info Section:
    • Trustee Name (Text Field): Enter the name of the court-appointed trustee.
    • Trustee Phone (Text Field): Enter the trustee’s phone number.

4.3. Attorney Tab

This tab is for informational purposes only; none of the fields are required.

  • Borrowers’ Attorney Info Section:
    • Name (Text Field): Enter the borrower’s attorney’s name.
    • Address Line 1 (Text Field): Enter the first line of the borrower’s attorney’s address.
    • Address Line 2 (Text Field): Enter the second line of the borrower’s attorney’s address.
    • C/S/Z+4 (City/State/Zip+4 Text Fields): Enter the city, state, and zip code for the borrower’s attorney.
    • Phone (Text Field): Enter the borrower’s attorney’s phone number.
    • Foreign (Checkbox): Check if the borrower’s attorney has a foreign address.
  • Credit Union Attorney Info Section:
    • Name (Text Field): Enter the credit union’s attorney’s name.
    • Address Line 1 (Text Field): Enter the first line of the credit union’s attorney’s address.
    • Address Line 2 (Text Field): Enter the second line of the credit union’s attorney’s address.
    • C/S/Z+4 (City/State/Zip+4 Text Fields): Enter the city, state, and zip code for the credit union’s attorney.
    • Phone (Text Field): Enter the credit union’s attorney’s phone number.
    • Foreign (Checkbox): Check if the credit union’s attorney has a foreign address.

4.4. Bankruptcy Tab

This tab provides detailed information specific to bankruptcy filings. None of the fields on this tab are required and are informational only.

  • Details Section:
    • Filed By (Text Field): Enter the name of the person who filed the bankruptcy.
    • Score (Text Field): Enter the member’s bankruptcy score.
    • Chapter (Text Field): Enter the bankruptcy chapter filed (e.g., 7, 13).
    • Court (Text Field): Enter the name of the court where the bankruptcy was filed.
    • Comment (Text Field): Enter any relevant comments regarding the bankruptcy.
    • Bankrupt (Checkbox): Check this box to indicate the member account is currently in bankruptcy status.
  • Amounts Section:
    • Cramdown (Text Field): Enter the negotiated cramdown amount.
    • Arrears (Text Field): Enter the amount due in arrears.
    • Payoff (Text Field): Enter the payoff amount.
  • Dates Section:
    • File Date (Date Picker): Enter the date the bankruptcy was filed.
    • Referred to Attorney (Date Picker): Enter the date the account was referred to an attorney.
    • Confirmation Hearing (Date Picker): Enter the scheduled date of the confirmation hearing.
    • Anticipated Discharge (Date Picker): Enter the anticipated discharge date for this bankruptcy item.
    • 341 Meeting (Date Picker): Enter the 341 meeting date.
    • Proof of Claim Filed (Date Picker): Enter the date the proof of claim was filed.
    • Confirmation Approved (Date Picker): Enter the date confirmation was approved.
    • Discharged (Date Picker): Enter the actual discharge date for this bankruptcy item.
    • Relief From Stay (Date Picker): Enter the date relief from stay action against the debtor or debtor’s property was approved.
    • Amended POC (Date Picker): Enter the date an amended proof of claim was filed.
    • MLS Filed (Date Picker): Enter the date a motion to strip a lien was filed.
    • Reinstatement (Date Picker): Enter the date the loan is reinstated following a bankruptcy filing.
    • Stay of Action (Date Picker): Enter the date a stay of action against a co-debtor was approved.
    • Reaffirmation (Date Picker): Enter the date the borrower reaffirmed the debt.
    • MLS Hearing (Date Picker): Enter the hearing date for a motion to strip a lien.
    • Dismissed (Date Picker): Enter the date the bankruptcy was dismissed.