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Adjusting to Rising Bankruptcies in Modern Collections

Although handling bankruptcies is nothing new in the collection industry, with consumer bankruptcies up a whopping 18% (Epiq AACER) in 2023 and no real slowdown anticipated for 2024, it is a great time to evaluate and modernize your business response surrounding bankruptcy.

When analyzing your current operations, break down the account bankruptcy process into three sections:

  • Identification – How and when do you identify a bankrupt account? Statistically speaking more accounts will be bankrupt both on assignment and after placement while in your active inventory in 2024. Being able to identify an account as bankrupt before putting money and effort into it is crucial.

  • Confirmation – How do you confirm the validity of a bankruptcy associated with an account? The next step after the identification of a bankruptcy is to confirm the account associated with the bankruptcy identified. A lot of businesses still pay folks for this process but there is an easier way.

  • Response – Once an account is identified and confirmed as bankrupt, what process takes place and is it automated? Automate your response to bankruptcy information to replace the cost of people scrutinizing the same information.

Current account monitoring technologies enable your business to easily navigate what used to be a stressful expensive task for minimal cost.  It will assist your business in the process of bankruptcy identification, confirmation, and response.  If you are curious about this technology, you can check it out on our past blog".

No business wants to pay for a lawsuit, unneeded letters, people to confirm bankruptcies, or even a text or email if they don’t have to. Take a look at your current operations, dust off the cobwebs if necessary, and discover an easy way to modernize your 2024 bankruptcy processes with account monitoring technology.


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