Solutions · Bankruptcy & protected borrowers
The automatic stay arises by law. When notice reaches your team, LendEasy opens the case, records the restriction, pauses affected autopay, suppresses collections outreach, and cancels affected scheduled contacts across connected systems, with evidence for each action. The same restriction framework supports applicable SCRA controls, communication restrictions, and deceased-borrower handling.
A coordinated response
System
Bankruptcy notice arrives — case auto-opens
Compliance Gate
Stay restriction recorded and enforced
System
Affected autopay paused, outreach suppressed
Human
Communications follow recorded routing
Each pause, suppression, and cancellation is recorded — full walkthrough below
The scenario
Follow one filing through case creation, payment and outreach restrictions, required communication routing, and final disposition.
Bankruptcy notice arrives — or a data source identifies a filing
Whether your team records a notice or a connected data source finds the filing, the same workflow begins.
Evidence: The triggering notice or match, with source and timestamp.
A case opens with the petition details
The case includes the chapter, filing date, case number, account context, and a saved view of the facts available when it opened.
Evidence: Petition details and context snapshot pinned to the case.
Stay restriction recorded and enforced
The stay arises by law. LendEasy records its effective scope as an enforced restriction that the compliance gate evaluates before future servicing actions on the affected debt.
Evidence: The restriction, its legal basis, scope, and effective time.
Autopay paused, outreach suppressed, affected contacts cancelled
Configured consequences run together: pause debits on the affected debt, suppress collection outreach, and remove scheduled contacts from downstream queues.
Evidence: A separate record for each pause, suppression, and cancellation.
Communications follow counsel-of-record routing
When the case requires counsel-of-record routing, agents see the restriction and communication instructions when they open the account.
Evidence: Routing rule and every subsequent contact decision.
Discharge or dismissal handled when the case resolves
The recorded disposition applies the configured restriction changes, keeping protections that continue and lifting those that end.
Evidence: The disposition, resulting restriction changes, and linked history.
Borrower protections
Record the trigger, apply the configured restrictions, route the case, and keep a history of what happened.
A notice or data-source match opens a case with petition details. What happens automatically:
A verified military-status signal opens a review of the protections that may apply. What happens next:
A potential cease-communication or channel opt-out request is detected in a call, reply, or letter. What happens next:
Notification of a borrower's death starts the configured estate workflow. What happens automatically:
Why speed matters
A fast, coordinated response helps prevent an affected debit, letter, or collection call from continuing after the filing is known.
Manual handoffs can leave one system updated while another still holds a scheduled debit or message. LendEasy records the restriction once and checks connected payment and outreach actions against it before execution.
Manual process
Notice moves through the mailroom, an analyst, and each downstream system in separate handoffs.
Coordinated response
The recorded restriction is checked before connected payment and outreach actions run.
Illustrative comparison of process shape, not a measured benchmark.
The restriction model
Each restriction records its scope, effective time, basis, and policy source. LendEasy checks it before affected actions run.
A restriction can cover all outreach or specific channels and debts. The record shows exactly which communications and accounts it affects.
Restrictions record when they start and respond to events such as dismissal, discharge, or an effective change in instructions. Each adjustment is recorded.
Closing a case does not remove a restriction that must remain in effect. Continuing protections stay attached to the borrower and are checked before later actions.
The evidence trail
When a trustee or examiner asks what happened after notice, the record includes the source, restriction, cancelled contacts, and suppressed actions in a tamper-evident export.
FAQ
The automatic stay arises by law. When a notice is received or a configured data source identifies the filing, LendEasy can open the case, record the restriction, pause affected autopay, suppress collections outreach, and cancel affected scheduled contacts as one workflow. Later actions are checked against the recorded restriction before execution.
Walk through a notice, the recorded restriction, payment and outreach changes, final disposition, and the resulting audit record.