NLS 5.19 and later
NLS can be configured to file bankruptcy claims and apply settlement results to existing loans.
This feature requires an active account with BankruptcyWatch. A Case Management/Electronic Case Files (CM/ECF) system is also required to access filed documents. Please contact the respective organization for information on registration and usage of their services.
Basic configuration must be performed before configuring other components of bankruptcy.
Go to Bankruptcy Setup which is located in File > Setup > Loan Setup > Bankruptcy.
Click to add a new bankruptcy configuration.
|Name||The name of this configuration for your own reference.|
|Username||Username used to log into BankruptcyWatch.|
|Password||Click to enter the password for the Username.|
Click the Bankruptcy Endpoint tab and enter the parameters as provided to you.
|URL||This is the URL that is supplied by BankruptcyWatch to access their services.|
|Port||The port number to use for the URL access.|
The URL to the NLS Web Service running the BankruptcyWatch webhook.
For hosted clients, please contact Nortridge Support to have our infrastructure team set up your webhook.
For licensed clients, see BankruptcyWatch Webhook on installing your own BankruptcyWatch webhook.
|Secure||Select to use a SSL connection.|
Go to Setup > Loan Setup > Loan Group and in the Servicing Options tab, select the configured bankruptcy setup for Bankruptcy.
Configuration for bankruptcy is located in Setup > Loan Setup > Bankruptcy.
Bankruptcy Setup Tab
Run NLSBKSubscriptions.exe, located in your NLS installation folder, to generate and send a list of contacts to BankruptcyWatch for monitoring.
Click Subscribe to activate the consumer monitoring service provided by BankruptcyWatch.
Click List Active Items… to view a list of borrowers that are currently subscribed to consumer monitoring.
Click Subscribe… to activate the case monitoring service provided by BankruptcyWatch.
Choose the desired case monitoring package and enter the Minimum Payoff Balance for Case Monitoring threshold. This threshold is the minimum payoff balance of a loan at which the case monitoring begins.
ExampleEnter 1,000.00 to monitor all loans for which the payoff balance is 1,000.00 or more.
|Events Returned by BankruptcyWatch||Description|
|Case Discharged||A case was discharged.|
|Case Dismissed||A case was dismissed.|
|Case Reopened||A case was reopened.|
|Case Transferred||A case was transferred from one division to another.|
|Joint Debtor Discharged||The joint debtor was discharged.|
|Joint Debtor Dismissed||The joint debtor was dismissed.|
|Plan Confirmed||A chapter 13 plan was confirmed.|
Click List Active Items… to view a list of cases (loans) that are currently subscribed to case monitoring.
Existing court (CM/ECF) accounts are required to access filed documents for each district courts. Click next to Court Credentials to enter access credentials for each district.
Click to create a new set of credentials for a district.
|ID||This is automatically assigned by NLS.|
|Username||Username used to log in.|
|Password||Click to enter the password for Username.|
|District||The district code for this credential.|
|Description||A description for your own reference.|
|Make Default||Select to make this the default credential to use.|
Proof of Claim Setup
Click next to Proof of Claim Setup to specify which amounts are to be included in the claim amount in the proof of claim filing.
The selected items will be included in the claim amount. The principal is always included in the claim amount and is not an option.
The Basis of Claim field is for entering a comma separated list of items to be listed during the proof of claim filing wizard.
Creditor / Signatory Setup
Click next to Creditor / Signatory to configure the “Signature Address” information that is included in the proof of claim sent to BankruptcyWatch.
- Organization is optional.
- SSN and EIN are mutually exclusive and one of the field is required.
- If a Creditor Number is specified in the proof of claim, the creditor details are not sent to BankruptcyWatch.
- First/Middle/Last must be blank when Organization is specified.
- SSN and EIN must be blank when Organization is specified.
- Organization is optional.
Trustee / Lawyer Portfolio
When a bankruptcy filing is received by NLS and the associated trustee or lawyer information does not exist in the database, new contacts will be created using the specified configuration.
Click next to Trustee/Lawyer Portfolio to configure the trustee and lawyer contact classification.
Select Override Payment Distribution Order and click to configure the distribution waterfall for payments from the trustee.
Click next to Task Template to associate the bankruptcy setup to an existing task.
Bankruptcy related status codes are configured in the Status Codes tab. See Status Codes for additional information on the various options associated with status codes.
Status codes are automatically assigned to loans based on notifications received from BankruptcyWatch.
|Bankruptcy Status Code||Consumer Information Indicator Code|
|Chapter 7 Dismissed Pending|
|Chapter 7 Dismissed||I - Chapter 7 Bankruptcy Dismissed|
|Chapter 7 Reaffirmed||R - Reaffirmation of Debt|
|Chapter 7 Withdrawn||M - Chapter 7 Bankruptcy Withdrawn|
|Chapter 7 Reaffirmation Rescinded||V - Chapter 7 Reaffirmation of Debt Rescinded|
|Chapter 7 Discharge Pending|
|Chapter 7 Discharged||E - Discharged through Chapter 7 Bankruptcy|
|Chapter 13 Petition||D - Petition for Chapter 13 Bankruptcy|
|Chapter 13 Pre Plan Confirmed|
|Chapter 13 Plan Confirmed|
|Chapter 13 Dismissed Pending|
|Chapter 13 Dismissed||L - Chapter 13 Bankruptcy Dismissed|
|Chapter 13 Withdrawn||P - Chapter 13 Bankruptcy Withdrawn|
|Chapter 13 Discharged Pending|
|Chapter 13 Discharged||H - Discharged/Completed through Chapter 13 Bankruptcy|
Pending transaction codes are assigned to loans which are awaiting confirmation from BankruptcyWatch on the related status.
Additional transaction codes may be created as needed. However, those transaction codes must be assigned to loans manually.
Processing for BankruptcyWatch
There are two applications, NLSBKSubscriptions.exe and NLSBKNotifications.exe, that will need to be run manually or on a schedule to process files required by BankruptcyWatch.
NLSBKSubscriptions.exe will send a list of contacts—with no active bankruptcies and at least one active loan—in NLS to BankruptcyWatch.
NLSBKNotifications.exe will process the notifications from BankruptcyWatch and import the details into NLS.
The Bankruptcy tab in the Loan view contains the bankruptcy inquiry. The information contained within are comprised of data received from BankruptcyWatch and existing data in NLS.
Bankruptcy Ribbon Bar
A Bankruptcy ribbon bar will become available on loans in bankruptcy.
|File Proof of Claim||
Launches the POC Filing Wizard to begin the claim filing process.
Select whether this will be filed using ePOC or CM/ECF.
Step 1 of 3
Select a loan collateral type and attach additional documents to the claim.
Step 2 of 3
Verify that the claim amount is correct and select basis of claim (required).
Step 3 of 3
Verify the information and click Finish to file the proof of claim.
A final confirmation alert will appear before the POC is filed.
|Do Not File Proof of Claim||Forgoes filing a proof of claim at this time.
Displays a dialog to confirm that a proof of claim will not be filed and a reason must be provided.
A proof of claim may still be filed at a later time.
|View Documents||Opens a window for retrieving PACER documents.|
Retrieves the docket report from BankruptcyWatch. Additional fees may apply.
Clicking will open a dialog for selecting the document to retrieve.
Select the appropriate ID of the document available from BankruptcyWatch and click Download to retrieve the document.
All downloaded documents will appear in the following list.
|Bankruptcy Plan||Displays a dialog for entering new values from the Confirmed Bankruptcy Plan.
Loan will be updated with the new values.
Dismisses the bankruptcy. A clawback will be performed if the On Bankruptcy Dismiss configuration in Setup > Loan Setup >Defaults is set to Perform Clawback.
When a clawback is performed, NLS will create a snapshot of the loan at the time the notification of the dismissal is received from BankruptcyWatch. A copy of the loan will then be created with the following:
|Discharge||Discharges the bankruptcy. The loan will be written off and closed if the On Bankruptcy Discharge configuration in Setup > Loan Setup > Defaults is set to WriteOff & Close.|
Transaction made on a loan during a bankruptcy can be specified as having been paid by an entity other than the borrower. In the transaction entry dialog, click Advanced… and select the appropriate contact from which the payment was received. The Paid by list includes all contacts associated with the loan in its contact-loan relationship and any contact designated as a trustee in the bankruptcy setup.
When a contact files for bankruptcy, a “case filed” notification will be received from BankruptcyWatch and NLS will begin monitoring all loans associated with the contact. A contact in bankruptcy will be indicated by a icon next to the name field.
If needed, the filing petition called “Voluntary Petition” may be requested from BankruptcyWatch.
By default, NLS will monitor the following dispositions from BankruptcyWatch.
|Closed / Terminated|
|Closed / Terminated|
If a contact has an existing bankruptcy at the time the list of contacts are sent to BankruptcyWatch, that contact and its associated loans will not be monitored.
User and group privileges for bankruptcy may be configured under the Bankruptcy item in the privilege list.