Reporting a bankruptcy to credit reporting agencies

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A bankruptcy occurs when a customer can no longer able pay their debts. When an customer declares bankruptcy, letters, notices, and phone calls to the customer are no longer allowed, and the bankruptcy must be reported to the credit reporting agency.

To report a bankruptcy to a credit reporting agency:

1. Open an account in the Collector screen.
2. At the CMD prompt, type BK, and press Enter.
3. In the Credit Reporting Actions window, press Enter or click Ok.

4. In Consumer Information Id window, select a bankruptcy ID, and press Enter or click Ok.

   The following table lists a description of the different types of bankruptcies:

   Type	Description
   Chapter 7	A company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company's assets to repay creditors.
   Chapter 11	A form of bankruptcy that involves a reorganization or restructuring of the company's business affairs and assets. It is generally filed by organizations that need time to restructure their debts.
   Chapter 12	A bankruptcy proceeding that gives a farm or fishery the ability to reorganize assets and debts while allowing it to continue operating. The trustee works with the farm or fishery to develop a payment plan to meet obligations.
   Chapter 13	An individual undertakes a reorganization of their finances under the supervision and approval of the courts. As part of the reorganization, the individual must repay all creditors within three to five years.

5. At the Enter New Status code (?) window, do one of the following, and press Enter or click Ok:
   • Type a status code.
   • To see a list of status codes, type ?.
     • In the Status Codes window, select a status code, and press Enter or click Ok.

6. Do one of the following:

   For an account not in a packet

   1. At the Ok To Proceed (Y/CR=N) prompt, type Y.
   2. At the Action accepted for debtor number? press Enter, or click Ok.
   For all the accounts in a packet

   1. At the Apply updates to all packet members? prompt, click Yes.
   2. At the Ok To Proceed (Y/CR=N) prompt, type Y, and press Enter.
   3. At the Action accepted for debtor number? press Enter, or click Ok. Repeat this step for each account in the packet.
   For only a single account in a packet

   1. At the Apply updates to all packet members? prompt, click No.
   2. At the Ok To Proceed (Y/CR=N) prompt, type Y, and press Enter.
   3. At the Action accepted for debtor number? press Enter, or click Ok.
   For multiple accounts in a packet

   1. At the Apply updates to all packet members? prompt, click Select.
   2. At the Ok To Proceed (Y/CR=N) prompt, type Y, and press Enter.
   3. At the Ok to Update Account number prompt, click Yes or No. Repeat as necessary for each account in the packet.
   4. At the Action accepted for debtor number? press Enter, or click Ok. Repeat for each of the accounts you reported bankruptcy for.
7. At the CMD prompt, to cancel, type /, and press Enter.