source:
  type: guide
  id: hud-4000-1-i-p-bankruptcy
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part I — p. Bankruptcy
    (09/14/2015)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part I — p. Bankruptcy
    (09/14/2015).
  coverage_tier: operative
obligations:
- id: hud-4000-1-i-p-bankruptcy-full
  canonical_id: hud-4000-1-i-p-bankruptcy-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part I — p. Bankruptcy
    (09/14/2015)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part I — p. Bankruptcy
      (09/14/2015)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: p. Bankruptcy (09/14/2015) i. Business A Mortgagee that files
      a Chapter 7 bankruptcy petition must submit a Notice of Material Event to FHA.
      A Mortgagee that files a bankruptcy petition under any other chapter of the
      United States Bankruptcy Code must submit a Notice of Material Event to FHA
      and submit with its notice, and quarterly thereafter, an internally prepared
      balance sheet and a statement of adjusted net worth for as long as the bankruptcy
      petition is active. The Mortgagee must submit a Notice of Material Event to
      FHA of each change of status in the bankruptcy. FHA reserves the right to require
      the Mortgagee to submit additional information upon request in order to determine
      if the Mortgagee is eligible to maintain its FHA approval. ii. Personal The
      Mortgagee must submit a Notice of Material Event to FHA if any Corporate Officer
      or Principal Owner commences voluntary or involuntary bankruptcy. A current
      credit report for that Corporate Officer or Principal Owner must be submitted
      with the Notice of Material Event. FHA must be notified of each change of status
      in the bankruptcy proceedings.
  judgment: false
