Highly effective professional commercial collectors have several characteristics in common. These traits promote successful resolutions for each and every commercial collection call. Burt & Associates, an SAS70 certified company, prides itself on the highly qualified professional commercial collections staff who handle your accounts. Good listening skills, motivational techniques and assertiveness are all qualities that a successful commercial collection agency should instill in their collection professionals. As always, please do not hesitate to contact us with your questions and comments.
Business Bankruptcy Filings May Increase
According to some attorneys, bankruptcy filings may be about to take off as some analysts are predicting that financing options will shrink in the future.Currently, corporate debt-default rates stand at all-time lows and business bankruptcy filings are down 45%.According to some, troubled companies have been able to borrow cheap money since investors and hedge funds are flush with cash and ready to lend.That in turn has resulted in debt-driven corporate mergers, buyouts and spin offs, which, in effect, have allowed struggling companies, that can refinance debt, to put off solutions to their operational problems.However, now some analysts predict that the current trend may end soon and thus lead to more bankruptcy filings.
The Credit Manager’s Q&A Corner
QUESTION: Discuss bars to collections efforts in a bankruptcy filing.
ANSWER: When a debtor files for bankruptcy, whether under Chapter 7, 11, or 13, and whether it's a voluntary filing or involuntary filing, “all entities” are automatically and immediately stayed from taking any action or continuing any legal action against the debtor. This includes attempts to collect debt from the debtor by any party. This also applies to the enforcement of liens against the debtor's property. This stay also relates to repossessions of property. If the creditor had repossessed property prior to the filing of the case but had disposed of it by sale, the creditor could, and the key word here is “could”, be required to make restitution of that asset to the bankruptcy estate.