22 March 2024
/ Scott D. Fink
Find Yourself Overwhelmed With the Increase of Bankruptcies? Here Are 5 Tips
1. Staff up!
The trend of bankruptcy filings increasing year over year is holding strong. It’s important to evaluate your staffing levels and determine if you can handle, not only current volumes but an increase of another 15% in the next year. Staffing and retention issues have been a constant theme in our industry since 2020, so it’s better to get out in front of the issue now as opposed to waiting until your staff is struggling to keep up.
2. Make arrangements with a firm or servicer to handle overflow volume
Firms like Weltman are uniquely situated to take on overflow volumes from their clients, especially with tasks such as proofs of claim and reaffirmation agreements. The sooner you develop a relationship with such a firm or servicer, the better-positioned your organization will be to seamlessly hand off your overflow volumes with little to no delay.
3. Educate your staff
Hiring and retention are only half the battle - you also need to make sure your staff has the proper knowledge of bankruptcy law and procedures to ensure your organization’s interests are being protected. Does your staff understand what documents must be attached to a proof of claim? Do they understand the timing and need for a motion for relief from stay when collateral must be recovered? Do they know how to review and evaluate a chapter 13 plan to determine if your claim treatment is objectionable? Weltman offers our clients bankruptcy training to familiarize your staff with bankruptcy terminology, law, and procedure through in-person sessions, live webinars, pre-recorded educational sessions, and additional materials.
4. Be mindful of court deadlines
As bankruptcy filing volumes increase, it has never been more important to stay aware of court deadlines to file proofs of claim and object to chapter 13 plans. Failure to meet these deadlines can have severe negative consequences for your ability to receive payments on an account and/or to receive proper treatment within a case.
5. Prioritize bankrupt matters
Make sure you are triaging accounts with court deadlines upcoming first. The deadline to file a proof of claim in chapter 13 is 70 days. Make sure those accounts approaching the 70-day deadline receive attention before focusing on newly-filed cases. A timely-filed proof of claim is essential to protecting your rights in bankruptcy!
Our team is constantly monitoring this topic. If you have any additional questions, contact shareholder and Bankruptcy Group chair Scott Fink at any time.
These blogs are not a solicitation for business and are not intended to constitute legal advice on specific matters, create an attorney-client relationship, or be legally binding in any way.
