Debt Assumption

How to assume a total candidate loan:

Create a receipt on the contribution form for the negative amount of the debt. Designate the Contribution Type Code as “2 Loan” and Contributor Type Code as “19 Other”.

Create another record on the contribution form for the positive amount of the debt. Designate the Contribution Type Code as “1 Direct” and
Contributor Type Code as “20 Candidate Debt Assumption”.

The contributions created balance each other out, showing the debt has changed to a contribution for repayment of the candidate loan.

Add a "Current Amount Paid" amount onto the debt record that equals the amount outstanding on the debt. This will zero out the balance of the candidate loan.

How to assume a partial repayment of a candidate loan:

Create a negative receipt on the contribution form for the amount of the candidate loan repayment. Designate the Contribution Type Code as “2 Loan” and Contributor Type Code as “19 Other”.

Create another negative receipt on the contribution form for the remaining amount of the candidate loan. Designate the Contribution Type Code as “1 Direct” and Contributor Type Code as “20 Candidate Debt Assumption”.

Create another record on the contribution form for the positive amount equal to the remaining amount in the previous step. Designate the Contribution Type Code as “1 Direct” and Contributor Type Code as “20 Candidate Debt Assumption”.

The contributions created zero out the loan, showing part of the debt has changed to a contribution.

Add a payment on the debt record that equals the amount paid back and the amount of debt assumed. This will zero out the balance of the candidate loan.

How to assume a debt not designated as a loan:

Edit the existing debt record by creating a payment that will make the balance zero. Create a receipt on the contribution form for the positive amount of the debt. Designate the Contribution Type Code as “1 Direct” and Contributor Type Code as “20 Candidate Debt Assumption”.

Create an expense on the Expense form for the positive amount of the debt. Designate the Disbursement Type as "9 Debt Assumption".