Bankruptcy »
All borrowers file bankruptcy Chapter 7 or 11 »
One borrower files bankruptcy Chapter 7 or 11; others do not »
All borrowers file bankruptcy Chapter 12 or 13 »
One borrower files bankruptcy Chapter 12 or 13, others do not »
One borrower files bankruptcy Chapter 7 or 11; at a later time, second borrower also files Chapter 7 or 11 »
One borrower files bankruptcy Chapter 12 or 13; at a later time second borrower also files Chapter 12 or 13 »
One borrower files bankruptcy Chapter 7 while second borrower files Chapter 13 during same reporting period »
One borrower files bankruptcy Chapter 7; at a later time, second borrower files Chapter 13 »
One borrower files bankruptcy Chapter 13; at a later time, second borrower files Chapter 7 »
Lease Assumption (from bankruptcy) »
Return to Business Processes
Bankruptcy
One borrower files bankruptcy Chapter 7 or 11; others do not
Credit Bureau Extract Metro 2 Format users.
The following table describes events, user processes, and LeasePak reporting specific to this bankruptcy scenario. Refer to the Bankruptcy overview for instructions on managing accounts and clients in bankruptcy.
| Event | LeasePak User Process | Result |
|---|---|---|
| One client on account files bankruptcy Chapter 7 or 11; others do not. | Set chapter 'Chapter 7' or 'Chapter 11' and stage 'Petitioned' for affected client. | LP will report A or B. If DOFD is (blank) or (NULL), will set to filing date. If DOFD is not (blank) or (NULL), will use existing. Will freeze DOFD, report other account values as normal. |
| Client has bankruptcy discharged. | Set stage 'Discharged' for affected client. | LP will report E or F for that client. LP will report Amount Past Due as 0 on affected account(s) only if all clients on the account(s) are discharged. After reporting E or F, LP will cease reporting that client on affected account(s) in future months. |
| Client has bankruptcy dismissed or withdrawn. | Set stage 'Dismissed' or 'Withdrawn' for affected client. | LP will report dismissal (I or J) or withdrawal (M or N), then continue reporting the account as normal. |
Business Processes |
Appendix
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The information contained in this document is the sole property of NETSOL Technologies, Inc. Use of the information contained herein is restricted. Conditions of use are subject to change without notice. NETSOL Technologies, Inc. assumes no liability for any inaccuracy that may appear in this document nor does it have the obligation to update any of the information contained herein; the contents of this document do not constitute a promise or warranty. The software described in this document is furnished under license and may be used or copied only in accordance with the terms of said license. Unauthorized use, alteration, or reproduction of this document without the written consent of NETSOL Technologies, Inc. is prohibited.