Handling a Bankruptcy from A to Z

These steps outline the entire process of handling a bankruptcy in CU*BASE.

• To view individual bankruptcy steps (in case you've already completed some of the steps below), browse all bankruptcy topics.

• There may be other steps you need to take outside of CU*BASE for handling a bankruptcy. Follow your credit union policy as well as all federal and state laws governing the rights of debtors and creditors.

1. Search for accounts belonging to the member, including closed accounts and closed memberships. There's a video on this step!

   • Make a note of these accounts so that you may perform the steps below on the accounts.

   • You're searching for accounts or memberships that may still have remaining debts.

2. Add a comment to the member's base share (000) account noting the following:

   • Bankruptcy type

   • Filing date

   • Case number

   • Whether it's a joint or single filing

3. Create a Collections Tracker that includes the appropriate bankruptcy memo code and the full details of the bankruptcy:

   • Case number

   • Chapter

   • Filing date

   • Single or joint filing (if joint, who they filed with)

   • Attorney name and contact information

   • Objection date

   • Trustee name and contact information

   • Judge name and contact information

   • Court name and address

4. Change the Statement Group code to the one that corresponds to bankruptcy.

5. Mark the member's address as incorrect.

   • Enter the case number in the Reference field.

6. Remove the member from third-party mailings, if applicable.

7. Turn off the shared branching option, if applicable.

8. Freeze all of the member's accounts pending direction from the court.

9. Change loan disbursement limits to zero, if needed.

10. Change loan interest rates, if needed.

11. Adjust late fees, if needed.

12. Stop member delinquency notices from printing.

13. Stop cosigner delinquency notices from printing.

14. Change loan security codes, if needed.

15. Stop ANR notices from printing.

16. Update the credit bureau status code.

17. Update the Consumer Information Indicator code.

18. Hot card the member's ATM/debit cards.

19. Hot card the member's credit cards.

20. Update the underwriting comments.

21. If applicable, unenroll the member from the following eServices:

    • Bill pay

    • Online or audio banking

    • eNotices

    • eStatements

    • Tiered Services

      1. If applicable, redeem the member's lifetime Tiered Services points.

22. Update the member's household statistics to indicate bankruptcy.

23. Schedule a follow-up for the member's Collections XX Tracker to verify that a Discharge of Debtor is received so it doesn't get overlooked.

    • Enter a memo code of BK for bankruptcy.

    • When the follow-up is complete, be sure to include the relevant information for the follow-up notes based on your credit union policy (case number, discharge date, etc.).

24. Schedule another follow-up for the member's Collections XX Tracker after the Discharge of Debtor is received to verify that the case is closed.

    • Enter a memo code of BK for bankruptcy.

    • When the follow-up is complete, be sure to include the relevant information for the follow-up notes based on your credit union policy (case number, close date, etc.).

25. Update the Consumer Information Indicator Code again to reflect bankruptcy closure/completion/dismissal.

26. File the appropriate bankruptcy documents per your credit union policy.

27. Change system statuses accordingly in CU*BASE if the bankruptcy is reaffirmed per the Bankruptcy Reaffirmation Agreement.

28. Verify if a 1099 is required based on your attorney's suggestion.