Bankruptcy BPO Services for Debtors
On behalf of Chapter 7 or 11 commercial debtors, we provide a range of services aimed at administering the bankruptcy and providing for the orderly re-organization or winding down of the business, as appropriate.
What We Do
Collect outstanding A/R due to the Debtor/Estate
As the largest commercial collection agency in the world, and the only one with a specialized Debtor Services function, we can apply our extensive collection and bankruptcy expertise to maximize the recovery of accounts receivable for the estate. Too often, the outstanding A/R are forgotten until much later in the case, and this of course diminishes their value substantially. We strive to prevent such diminution.
Pursue preferences and avoidance actions
When so requested by the Debtor, Creditors Committee, Trustee, of whomever ends up with responsibility for the recovery of avoidance actions including preferences, we can issue letters to “targets” demanding that they repay the avoidable amount. Our special paradigm including letters and phone calls, coupled with our persistence and skills arising from our massive collection “machinery” can maximize the recoveries that can be achieved here prior to suit. Since this work is done totally on a contingent fee basis, debtors and their estates routinely find this an easy and effective way to get money into the estate quickly and without paying large (or for that matter, any) hourly fees.
Small Balance Preference Recovery
Under the recent revisions to the U.S. Bankruptcy Code, avoidance actions (preferences) under $10,000 must be pursued in the jurisdiction of the recipient from whom disgorgement is sought. Since most recoveries are achieved by our letter and call process, only few have to be pursued otherwise. Nonetheless, when that necessity occurs, we can turn to our network of contingency fee bankruptcy attorneys and bring in funds quickly without any sigfiicant out-of-pocket expenses.
Collection of Default Judgments
In some situations such as preference litigation or pursuit of outstanding A/R, the attorneys end up with default judgments to the benefit of the Debtor or Estate. We can pursue these judgments, reaching out to the Judgment Debtor who becomes aware that the situation is not going to “go away” and this encourages payment. Further, if execution on such judgments becomes necessary, we can turn to our national network of contingency fee bankruptcy attorneys to pursue the assets of the judgment debtor.
Bankruptcy Services for Debtors
- Recoveries are achieved for the estate where no recoveries were previously available
- Preference recoveries are achieved with a much lower cost and in much less time than through traditional preference litigation.
- The debtor/estate has the benefit of our experienced professional bankruptcy staff, minimizing the strain on their remaining in-house staff in achieving these gains.
