Bankruptcy Manager

Position Purpose and Objectives

The Bankruptcy Manager is responsible for the oversight, administration, and regulatory compliance of all bankruptcy accounts. This role ensures full adherence to NCUA regulations
, the Federal Credit Union Act, U.S. Bankruptcy Code, and applicable state laws while minimizing institutional loss exposure and protecting member relationships when appropriate.

• Manage all consumer and business bankruptcy accounts (Chapter 7, 11,12, 13).
• Evaluate secured vs. unsecured exposure and collateral position risk.
• Oversee reaffirmation agreement processes in accordance with regulatory standards.
• Monitor trustee payments and repayment plans for Chapter 13 cases.
• Ensure proper coding within the core system to prevent improper member contact.
• Coordinate/recommend repossession, foreclosure, or recovery strategies in compliance with automatic stay provisions.
• Develop bankruptcy strategy aligned with enterprise risk appetite
• Analyze portfolio trends and recommend policy or underwriting adjustments
• Partner with Lending to mitigate future bankruptcy exposure
• Present quarterly portfolio insights to executive leadership
• Accountability for bankruptcy-related net charge-offs
• ROI analysis of reaffirmation vs. recovery actions
• Coordinate with Mortgage Servicing on foreclosure timelines
• Consult with Lending on high-risk underwriting trends

• Ensure compliance with:
• National Credit Union Administration (NCUA) Rules and Regulations
• Federal Credit Union Act
• S. Bankruptcy Code (Chapters 7, 11, 13)
• Federal Deposit Insurance Corporation guidelines (where applicable for comparative best practices)
• Consumer Financial Protection Bureau (CFPB) regulations
• Office of Foreign Assets Control (OFAC) requirements
• Fair Debt Collection Practices Act (FDCPA)
• State-specific bankruptcy and collection laws
• Maintain examination-ready documentation for internal/external audits.
• Ensure automatic stay compliance to prevent regulatory violations or penalties.
• Review and approve proof of claim filings for accuracy and timeliness.
• Monitor adherence to charge-off policies consistent with NCUA guidelines and GAAP.
• Provide monthly reporting on bankruptcy trends, losses, and recovery ratios.

• Develop and maintain written bankruptcy procedures aligned with CUTX guidance.
• Implement internal quality control reviews of bankruptcy handling.
• Identify trends impacting delinquency, charge-offs, and net worth ratio.
• Approval authority for legal strategy thresholds
• Charge‑off timing approval authority
• Settlement authority limits
• Escalation process for high‑risk cases

• Serve as liaison between the credit union and outside bankruptcy counsel.
• Review legal strategy for contested matters and adversary proceedings.
• Approve legal invoices and monitor vendor performance metrics.
• Coordinate court filings and ensure compliance with jurisdictional deadlines.

• Performance management and development of Bankruptcy Specialists
• Workforce planning and workload balancing
• Training team on regulatory changes and legal updates
• Creating a culture of compliance + member dignity
• Succession planning
• Evaluate automation opportunities within core/collections system
• Improve tracking dashboards and reporting tools
• Recommend workflow efficiencies
• Lead system enhancement projects

Positions directly supervised: Bankruptcy Specialists

• Strong understanding of:
  • NCUA risk‑based supervision framework
  • Secured lending and collateral valuation
• Ability to interpret legal filings and court documentation.
• Strong analytical and reporting skills.
• Excellent written communication for board and examiner reports.

• Bachelor’s degree in Business, Finance, or related field and/or equivalent experience in a credit union or banking environment.

• Minimum 5–7 years of bankruptcy experience.
• Minimum 3-5 years of leadership or supervisory experience.
• Knowledge of foreclosure processes specific to Texas real property.
• Familiarity with bankruptcy procedures as they relate to…