Bankruptcy

When a borrower files for bankruptcy, the platform stops collections contact within a day of the filing reaching the court, opens a specialist case, and holds the stop while somebody proves the filing, the debtor, the chapter and the scope. A petition is filed at a court, not with the servicer, and the automatic stay attaches when it is filed — not when somebody tells you — so every collections call made in between was made after the protection began.

That is why the platform does two things at once: it watches the courts directly so the gap is a day rather than a delinquency cycle, and it restricts the account the moment anything lands, before anyone has proved it. Verification comes second on purpose, because the hours spent proving a filing are exactly the hours in which the next call would go out.

The pause is narrow. It stops collections contact — not the case, not the ledger, and not the borrower’s ability to pay. It is not a legal freeze, and it does not decide which obligations the stay actually covers. A matched filing opens a bankruptcy case at high priority into the bankruptcy specialist queue, and that is where the scope gets decided by someone qualified to decide it.

How a filing is found

Most filings are found rather than reported. The platform checks the courts daily through a monitoring service. Two details of how it does that decide whether a quiet night can be trusted.

Before reading what changed, it checks that it is watching the right people. A monitoring service subscribed to fewer borrowers than you think returns nothing — and nothing looks exactly like good news. Confirming the watch list first turns a coverage gap into a visible failure instead of silence.

It reads updates from where it left off, not from a clock. Each update carries a position marker, and that marker is saved, so a restart or a failed pass picks up exactly where it stopped rather than replaying old news or skipping past new news.

“No stay” and “nobody said” are different answers

One field is handled with unusual care. When a record comes back, stay status is stored as one of three things, not two:

Treating the third as the second is precisely how a servicer resumes collections against a protected debtor while its own records say the check was done. Everything else on the filing — case number, court, chapter, filing date, meeting and discharge dates, the debtor’s name — is kept as it arrived, and two filings by the same debtor stay two matters rather than being merged into one.

Matching a filing to a borrower

Three things are compared: the debtor’s name, the last four digits of their identifier, and — where the platform is already following a court case — the case number.

Names are compared as sets of words, so Maria Elena Chen and Chen, Maria Elena are the same name and Maria Chen is a partial one. If any field actively contradicts, the whole thing is treated as a conflict no matter what else agreed. If name and identifier both match exactly, it is treated as strong — which still means worth verifying now, not verified.

A filing the service cannot tie to a known borrower is not quietly dropped and is not attached to the nearest similar name. Working out who it belongs to is its own piece of work with its own evidence.

Six facts, and none can be guessed

Verification is the act of replacing a mention with a matter. Each of these has to come from a source, because a wrong answer to any one of them protects the wrong person or the wrong loan.

Documents enter through controlled upload, malware scan, classification, and specialist review. A free-text note is not the bankruptcy record: a summary somebody wrote cannot show which document a later contact decision actually rested on.

Named holds, never a bankruptcy flag

Verification applies named holds on the Lending Core rather than a vague bankruptcy=true flag—here, customer 412 with the Harbor loan in scope:

{
  "items": [
    {
      "restrictionId": 41,
      "restrictionType": "COLLECTIONS_HOLD",
      "loanRef": "7204",
      "active": true,
      "source": "case:LE-CASE-1001",
      "effectiveAt": "2027-06-03T14:00:00Z"
    },
    {
      "restrictionId": 42,
      "restrictionType": "COMMUNICATION_HOLD",
      "active": true,
      "source": "case:LE-CASE-1001",
      "effectiveAt": "2027-06-03T14:00:00Z"
    }
  ]
}

Compliance policy expands the holds into action-level controls—collections contact blocked, required notices individually evaluated, fee assessment blocked, outbound funding blocked—and counsel-approved policy determines that matrix and its exceptions. A single flag tells an operator that something is true without saying which of contact, fees, funding, and notices it forbids, so every reader ends up inventing the matrix again. The U.S. Courts overview explains the general distinction between the automatic stay and discharge; the platform does not infer their legal scope from a case label alone.

A queued call is re-checked at dial time

A call that was queued before the filing signal is re-evaluated at dial time. When the new restriction blocks it, LendEasy records a blocked attempt—without placing the call. Work judged only when it was queued would dial an hour after the platform already knew about the petition, which is the failure a stay is written to prevent. The same gate applies independently to messages, fees, payment requests, funding, schedule actions, statements, and reporting/furnishing actions according to the configured matrix.

Conflicting sources never lift a control

Bankruptcy state may arrive from documents, a specialist, court-data provider, or your core. LendEasy retains source, as-of, observed-at, confidence, and contradictions. Where two of them disagree, the disagreement becomes review work and the existing control stands: a stale feed that says dismissed would otherwise be enough to restart outreach against a case that is still live.

source state + evidence + freshness
       ↓
specialist decision
       ↓
named restriction applied or cleared
       ↓
continuous drift detection against authoritative systems

Resolution is not deletion

Dismissal, discharge, conversion, relief, or “not matched” each closes work differently. Clearing a temporary review hold is an explicit, prospective action whose evidence lives on the governing case. Continuing discharge, representation, or other controls can survive case closure. Historical restrictions, decisions, blocked attempts, and source documents remain auditable.