Business Processes

Lease Assumption (from bankruptcy)

Credit Bureau Extract Metro 2 Format users.

When client in Chapter 7 or 11 bankruptcy assumes a lease they might otherwise cease making payment for.

LeasePak Updates/Processes

• U0241 Credit Bureau Bankruptcy/API
• U0462 Credit Bureau Extract

Relevant LeasePak Interface Fields

• U0241 Credit Bureau Bankruptcy/API
  • "Chapter"
  • "Stage"
  • "Report removal request"

Process Overview

This is different from a loan assumption, where a new lessee takes over the responsibility of a lease or loan from the exiting lessee.

When the User indicates through U0241 Credit Bureau Bankruptcy that a lessee in bankruptcy (typically Chapter 7 or 11) will assume a lease that they might otherwise cease making payments for, LP will report the CII for that lessee as 2A.

If the User later indicates through U0241 a request to remove CII 2A, LP will then report the CII removal code of S for one month, then clear.

LeasePak User Process

Use interactive U0241 Credit Bureau Bankruptcy or third-party interface via API to perform a lease assumption from bankruptcy:

1. From the "Leases" list, select the lease(s) the lessee will assume
2. Click Change to open the Change window
3. Select the appropriate "Chapter" (typically 7 or 11)
4. For "Stage", select 'ASSUMED'
5. Click OK
6. In the "Leases" list, verify that the desired lease(s) have the correct "Chapter" and 'ASSUMED' "Stage"
7. Click Save to complete the lease assumption

To request removal of CII 2A:

1. From the "Leases" list, select the desired lease(s)
2. Click Change to open the Change window
3. Select/check "Report removal request"
4. Click OK
5. In the "Leases" list, verify that the desired lease(s) are now flagged "REMOVAL REQUEST"
6. Click Save to complete