Bankruptcy Manager

Bankruptcy Manager

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.

Major Duties and Essential Functions

• 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

Regulatory & Compliance Oversight

• 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.

Risk Management & Internal Controls

• 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

Legal & Vendor Management

• 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.

Leadership Responsibilities:

• 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

Specific knowledge, skills, and abilities required for this position:

• 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.

Education:

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

Qualifications:

• Minimum 57 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 secured debt.
• Strong negotiation skills.
• Advanced knowledge of loss mitigation strategies and mortgage servicing best practices.
• Experience working with bankruptcy attorneys and foreclosure trustees.
• Bilingual preferred (Spanish and English)

Physical Activities and Requirements of this Position

• Finger Dexterity - Using primarily just the fingers to make small movements such as typing, picking up small objects, or pinching fingers together.
• Grasping - Using fingers and palm on an object.
• Talking - Especially where one must frequently convey detailed or important instructions or ideas accurately, loudly, or quickly.
• Repetitive Motions - Movements frequently and regularly required using the wrists, hands, and/or fingers.
• Average Hearing - Able to hear average or normal conversations and receive ordinary information.
• Average Visual Abilities - Average, ordinary, visual acuity necessary to prepare or inspect documents or products, or operate machinery.
• Sedentary Work - While performing the duties of this job, the employee will frequently talk or hear, sit, use hands to handle or feel, and reach with hands or arms. The employee will occasionally, stand and walk, climb or balance, and stoup, kneel, crouch, or crawl. The employee will occasionally lift and move up to 10 pounds.

Working Conditions of this Position

• No hazardous or significantly unpleasant conditions.
• This role requires both office work limited travel. Occasional travel may be necessary for meetings of creditors, trainings, and visits with attorneys. Must be able to handle stressful situations and sensitive information with discretion.

Mental Activities and Requirements of this Position

• Reasoning Ability: The ability to use common sense or logic.
• Detailed - Ability to define problems collects data, establish facts, and draw valid conclusions. Ability to interpret an extensive variety of technical instructions in mathematical or diagram form and deal with several abstract and concrete variables.
• Mathematical Ability: The level of ability required to perform math skills and operations.
• Basic - Ability to calculate figures and amounts such as discounts, interest, commissions, proportions, percentages, area, circumference, and volume. Ability to apply concepts of basic algebra and geometry.
• Language Ability: The level of ability required to communicate and understand written and oral language.
• Typical - Ability to use passive vocabulary of 7,000-9,000 words; read at a fast-paced rate; and define unfamiliar words in dictionaries for meaning, spelling, and pronunciation. Ability to write moderate to complex documents. Ability to communicate in complex sentences, using normal word order with present and past tenses and strong vocabulary. Ability to read, analyze, and interpret common scientific and technical journals, financial reports, and legal documents. Ability to respond to common inquiries or complaints from customers, regulatory agencies, or members of the business community. Ability to write speeches and articles for publication that conform to prescribed style and format. Ability to effectively present information to top management, public groups, and/or boards of directors.

Compliance requirement

• The responsibilities contained within this job description remain compliant with the Bank Secrecy Act / Anti-Money Laundering, Office of Foreign Assets Control and USA PATRIOT Act as they apply to the duties of the position.

Disclaimer

• The information in this job description has been designed to indicate the general nature and level