Request for Bankruptcy

You can initialize the request for bankruptcy on behalf of the customer. Based on the user defined descriptive flexfield, you can record the detailed information such as claims, attorneys involved, filing location, and any other legal information.

A submitted bankruptcy request is sent to appropriate person for approval. The bankruptcy is either approved or rejected.

Here are the things that happens to a bankrupted customer transactions:

The status of the customer is changed to Bankrupt.
All the Collection activities of the bankrupt customer are suspended.
The Delinquent transactions of the customer no longer appear on your Collections Dashboard.

Points to consider

It is important to consider these points before creating the request for bankruptcy:

Ensure that Request Bankruptcy is enabled in preferences.
Bankruptcy is applied at customer, account and site levels.

Create Request for Bankruptcy

Here are the steps to create request for bankruptcy for a customer:

On the landing page, go to Collections menu and click the Collections submenu.
Search for the customer account. Click Customer.
Click the Profile tab.
In Bankruptcy sub tab, click Request button.
Select the Reason for bankruptcy.
Optionally if required, enter Comments and upload Attachment.
Click Save and Close.

Note:

You can withdraw a bankruptcy after a bankruptcy request has been submitted. If bankruptcy isn’t approved, you can't withdraw the bankruptcy. You need to contact the person approving the request to reject it.

Bankruptcy Request Status

This table shows the actions a collector can take:

Request Type	Request Status	Bankruptcy Status
Bankruptcy Request	Request Pending	Request Pending
Bankruptcy Request	Request Approved	Request Approved
Bankruptcy Request	Request Rejected	Request Rejected
Bankruptcy Withdraw	Withdraw Pending	Request Approved Note: The withdraw request can only be enabled when the bankruptcy status is Approved, at this step the bankruptcy status isn’t changed.
Bankruptcy Withdraw	Withdraw Approved	Withdraw Approved
Bankruptcy Withdraw	Withdraw Rejected	Note: The withdraw request can only be enabled when the bankruptcy status is Approved, at this step the bankruptcy status isn’t changed.