Brief Description

Business Process: 4.3.2.8 CC&B Manage Bankruptcy

Process Type: Sub-Process

Parent Process: 4.3.2 CC&B Perform Collection Activities

Sibling Processes:

•	4.3.2.1 CC&B Manage Collection Process

•	4.3.2.2 CC&B Manage Severance Process

•	4.3.2.3 CC&B Manage Pay Plan

•	4.3.2.4 CC&B Manage Payment Arrangement

•	4.3.2.5 CC&B Manage Late Payment Charge

•	4.3.2.6 CC&B Write Off Uncollectible Receivables

•	4.3.2.7 CC&B Manage Collection Agency Referral

•	4.3.2.9 CC&B Manage Liens

•	4.3.2.10 CC&B Manage Foreclosure

This process describes how organizations maintain, track and write off uncollectible debt due to Bankruptcy. Organizations need to retain and record information for Bankruptcies including:

•	Filing Date and Document Identification

•	Type of Bankruptcy

•	Related Persons associated with the Bankruptcy

•	Court and Attorney Information

•	Credit Bureau Information

•	Bankruptcy Status and Lifecycle

The pre petition debt needs to be separated, as it is legally uncollectible. The uncollectible debt is transferred to a separate Write Off Service Agreement. Typically the credit history is updated, and a new Account established for post petition debt. A new deposit may be required. CC&B can be configured so that the CSR or Authorized User can easily distinguish the Bankrupt Account and the new Account.

CC&B has functionality to accommodate the maintenance, tracking and follow up for the Bankruptcy. Activities related to Bankruptcy can be logically grouped together to transition the Bankruptcy from one status to another as needed. Special customizations and configuration are required to make use of this functionality.