Although we are not yet seeing pre pandemic numbers, we are seeing a steady rise in personal bankruptcies year over year. CBS News reported a 16% increase from a year ago and 2023 saw its own 18% rise over 2022.
Listening in on a recent collection industry webinar, a couple attorneys identified the fact that they are seeing an uptick in bankruptcy cases and recommended at the very least to have some sort of bankruptcy scrub when an account is placed.
They went on to say that in a “perfect world” they would definitely scrub, as a best practice, after placement as well, including prior to suit. They mentioned they weren’t aware of this service and would anticipate it to be expensive if it did in fact exist.
The bad news is, it would appear we have neglected to share our solution to this pain point in a more global way. The good news is, there is a product out there to address this rising need.
Bankruptcy, litigious, and deceased daily monitoring of accounts has been in many of our clients’ arsenal for a number of years. The service simply scours your accounts daily and provides updates to accounts that have bankruptcy, litigious, or deceased changes. Thus allowing for automated, data based decision-making.
This flexible inexpensive solution can go a long way in not only mitigating suits, but can also improve efficiency and dollars spent within an agency by treating these accounts differently.
If you are seeing an uptick in your bankruptcies or want to prepare for the inevitable storm, please reach out to an Intelitech associate and ask about our Account Monitoring solution. You can reach us directly at solutions@intelitechgroup.com.