Bankruptcies Can Create Pay Plans

Payment plans can be created as a result of bankruptcy. Certain types of bankruptcy, specifically those that seek readjustment of debts typically require that the debtor fulfill an agreed-upon payment plan.

The debt is usually not discharged until the payment plan is fulfilled. In some exceptional cases, the debtor may declare hardship, in which case, the court may decide to discharge the debt anyway.

The C1-Bankrutpcy business object provides for an ability to create pay plans for the bankruptcy. Creating a pay plan for the bankruptcy results in the cancellation/stopping of any pay plans that existed before the bankruptcy and that cover any of the obligations that are included in the bankruptcy. It also has logic to prevent automatic discharge when the bankruptcy-related pay plans are not yet fulfilled.