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Bankruptcy Servicing

Providing Centralized Federal Student Loan Bankruptcy Servicing to FFELP Guarantors Pursuing Outsourcing for Administration of the Bankruptcy Process for Pre- and Post-Default Borrowers


ECMC provides an effective and efficient centralized approach to federal student loan bankruptcy servicing, including highly sophisticated systems and processes as well as legal and staff expertise.

Our servicing is well supported by our proprietary, scalable, integrated systems platform that is explicitly designed to accommodate the complexities of the federal student loan bankruptcy process. Our system meets all regulatory requirements, and all NIST 800-53 standards, which is the basis for the Federal Information Security Management Act (FISMA). Using electronic imaging and workflows, total document and case management are achieved in a secure and paperless environment.

Bankruptcy servicing includes the following:

  • File proofs of claim (POC) or notice of assignments as needed for Chapter 13 and Chapter 7 asset cases
  • Bankruptcy monitoring (e.g., POC acknowledgements, case follow ups, miscellaneous document reviews, correspondence reviews)
  • Timely review of Chapter 13 plan language and raising objections to language that may compromise the debt
  • Timely response to POC objections
  • Customer service related to bankruptcy issues
  • Discharge and dismissal processing

With ECMC's uniquely structured approach to administering bankruptcy for federal student loans, we protect the rights of borrowers by ensuring collection activities are stopped in a timely manner. Upon conclusion of the bankruptcy, the borrower is promptly returned to active servicing or collections.