When a borrower is in an active Chapter 7 or Chapter 13 bankruptcy, the servicer is authorized to:
- accept a copy of the bankruptcy schedule(s) in lieu of Form 710, provided that the schedule(s) is not more than 90 days old on the date the servicer receives the schedule(s),
- accept tax returns, if returns are required to be filed and
- use this information, along with any required income and hardship documentation as specified in Form 710, to determine borrower eligibility for workout options.
For more information please see: D2-2-05, Receiving a Borrower Response Package.