Bankruptcy notice handling

How do we stop collection activity the moment a bankruptcy notice arrives, route the loan to the bankruptcy team, and record the case details for the automatic stay?

Treat the notice as an event that changes the loan's state immediately. Callvu captures the bankruptcy notice from any source (the court's notice, the borrower, their attorney, a scrub against the court records), classifies the case (the chapter, the court, the case number, the filing date, the debtors, whether the property is in the plan), applies the automatic stay flags on the loan the same day (collection calls, letters, late charges, foreclosure and the dialer stopped; statements switched to the bankruptcy form), routes the loan to the bankruptcy team with the case, starts the proof of claim and the plan review on their clocks, and writes the case details and the flags to servicing so every other process reads them.

In scopeComplex: multi-party handoffsCallvu moves: classify, write back

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Last updated November 7, 2026.

The problem today

The borrower filed on Monday; the dialer called them on Tuesday, Wednesday and Thursday.

Today, without Callvu

A borrower files for bankruptcy. The court mails the notice to the servicer's lockbox. The attorney faxes it to a number on a letter. A week later, someone keys the case into servicing. In between, the collection calls, the late charges, the breach letter and the scheduled foreclosure sale all continued, each a violation of the automatic stay with sanctions attached.

The automatic stay takes effect on filing, not on the servicer's notice. From that moment, collection activity against the debtor and the property must stop, statements must change form, late charges and foreclosure must pause, and the servicer must file its proof of claim by the bar date and review the Chapter 13 plan for the treatment of the loan and the arrears. Regulation X adds the modified early intervention and periodic statement rules for a borrower in bankruptcy.

The notice is the trigger; the stay is the state; the flags are how the systems know.

How it runs

From the requestto the system of record.

A bankruptcy notice arrives from the court, the borrower or their attorney, or a scrub against the court records finds a filing. Callvu captures it and opens the case on the loan.

Borrower or their attorney: Provides the notice or the case details; receives communications only as the stay and the rules allow.
Bankruptcy team: Owns the loan from routing: the proof of claim, the plan review, the relief from stay decisions.
Servicing: Holds the flags, the case and the statement form.
Callvu: Captures, classifies, applies the flags, routes, starts the clocks and writes.

Capture and classify
The notice is read (the chapter, the district and court, the case number, the filing date, the debtors and whether they match the borrowers, the trustee, the bar date, whether the property and the loan are scheduled); the case is classified: Chapter 7 or 13 (or 11), the loan's status at filing, co-borrowers not in the bankruptcy, a repeat filing with a limited or no stay under the Code's repeat-filer rules.
Apply the stay flags
On the filing date the flags are set in the servicing system: collection calls and the dialer stopped, collection letters and late charges suspended, the foreclosure and any sale halted through the foreclosure process, the periodic statement switched to the bankruptcy form or stopped as the Reg Z exemption allows, the early intervention modified, and the credit reporting adjusted; a co-borrower outside the case is handled under their own rules.
Route and start the clocks
The loan is routed to the bankruptcy team with the case; the proof of claim is prepared from the loan's data for filing by the bar date (with the mortgage attachment and the arrears itemized in a Chapter 13), the plan review is started on the confirmation calendar, and a repeat filing's stay question goes to the bankruptcy team in the Decision Desk.
Write back and monitor
The case details, the flags and the clocks are written to the servicing system, the post-petition payments and the trustee payments are tracked separately, the payment change notices and the fee notices required in a Chapter 13 are generated on their rules, and the discharge or dismissal event ends the case and resets the loan's state through the same process.

Where it ends: The stay was honored from the filing date because the loan's state changed the day the notice arrived, the bankruptcy team owns the loan with the clocks running, and every other process reads the flags. The Decision Trace shows the classification and the flags; the Audit Trace shows the notice, the flags' time and the filings.

Runtime enforcement

What is enforcedwhile the work runs.

The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.

Regulations

Bankruptcy Code automatic stay (11 USC 362) and repeat filer limits (362(c)(3) and (4)): The filing of a petition stays the commencement or continuation of any act to collect a pre-petition debt or to enforce a lien against the debtor's property, from the moment of filing, with sanctions for willful violations (actual damages, fees and punitive damages under 362(k)); the stay is limited to 30 days for a debtor with a case dismissed in the prior year and does not arise for two or more, unless extended or imposed by the court.
Bankruptcy Rule 3002.1 and the proof of claim rules (Rule 3001(c)(2), 3002(c)): In a Chapter 13 case where the debtor keeps the home, the mortgage creditor must file a proof of claim with the mortgage attachment itemizing the arrears by the bar date (70 days after the filing for most cases), file a notice of any payment change at least 21 days before it takes effect, and file a notice of post-petition fees within 180 days of incurring them; failure limits the creditor's ability to collect them.
Reg X and Reg Z bankruptcy provisions (12 CFR 1024.39(c) and 1026.41(e)(5) and (f)): Early intervention is modified for a borrower in bankruptcy (the live contact requirement does not apply while the stay is in effect, and the written notice is modified), and the periodic statement is either exempt or in the modified bankruptcy form depending on the chapter and the debtor's intentions.

Company policies

The flags are set the day the notice arrives, effective from the filing date, before any review.
The dialer, the letters, the late charges and the foreclosure read the flags; no team is told by email.
The proof of claim and the Rule 3002.1 notices are generated from the loan's data on their clocks.
The servicing system holds the case, the flags and the separate post-petition tracking.

Controls

Notice capture from any source and court scrub.
Case classification including repeat filings.
Same-day stay flags across collection, foreclosure, statements and reporting.
Routing to the bankruptcy team.
Proof of claim and Rule 3002.1 notice generation on their clocks.
Discharge and dismissal handling.

Clocks and deadlines

Stay flags: Set the day the notice arrives, effective from the filing date.
Proof of claim: By the bar date, 70 days after the petition in most Chapter 7 and 13 cases.
Payment change notice (Rule 3002.1): At least 21 days before the new payment takes effect.
Post-petition fee notice: Within 180 days of the fee being incurred.

Documents and checks

The notice and the case classification
The flags with their time
The routing
The proof of claim and the Rule 3002.1 notices
The servicing record and the discharge or dismissal

In the Decision Trace

The classification and the stay determination.
The flags applied.
Any Decision Desk decision (a repeat filing, relief from stay).

In the Audit Trace

The notice receipt with time and source.
Each flag with time.
Each filing with time against its clock.

The handoff

Between the front doorand the back office.

The front door

The notice from any source; the borrower and their attorney meet the process in the communications the stay allows.

The back office

The bankruptcy team owns the loan from routing with the case on screen; every other team's systems read the flags.

The Decision Desk

A repeat filing's stay question, a relief-from-stay motion decision, or a co-borrower outside the case goes to the bankruptcy team lead in the Decision Desk with the classification and only the allowed outcomes.

Proof

In scope.Proof at scale, not one process at a time.

The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.

Bank Leumi runs its home lending workflows on Callvu.

MTG-01

Community Bank of Mississippi runs TRID loans on Callvu.

MTG-02

More than 1,000 processes are live across Callvu customers.

Across Callvu customers

Questions

What buyers ask next,answered plainly.

When does the stay take effect?

On filing, not on notice; the flags are set the day the notice arrives, effective from the filing date, so collection, late charges and foreclosure stop at once.

What does the bankruptcy team have to file?

The proof of claim with the mortgage attachment by the bar date, payment change notices 21 days before a change, and post-petition fee notices within 180 days, generated from the loan's data.

What about a co-borrower who did not file?

The classification handles them under their own rules, decided by the bankruptcy team lead where the policy requires.

Related processes

Foreclosure referral review Early intervention outreach Loss mitigation application Try it in the sandbox All home lending processes

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