People and businesses are filing for bankruptcy at a staggering pace, with 1.4 million petitions submitted in 2009, an increase of 32% from the previous year. The number is likely to jump higher in 2010. Associated with each bankruptcy petition are a large number of smaller court motions an individual or business files related to assets such as business loans, mortgages or cars. Companies and debt collection organizations can benefit from real time updates on these events in their efforts to recover debt and reduce losses.

Currently, if an organization working to collect debt would like to learn about key events in an individual’s bankruptcy filing, it would access the individual or business’s court case docket and conduct various searches on different events within the bankruptcy case, paying a fee for each search conducted.

LexisNexis Receivables Management Solutions can automate this process and deliver an extensive set of information to corporations, mortgage companies and third-party collections agencies about noteworthy events that occur during the course of a bankruptcy filing to help them make better and faster decisions about debt recovery.

In a preliminary trial LexisNexis conducted of bankruptcy events monitoring services with four top-tier first party organizations, customers saved 50% or more in cost associated with bankruptcy related searches by using this new offering.

An example of a common bankruptcy event within the auto industry is “motion to redeem.” This is a process that a debtor can take to keep his or her car for an amount far lower than the amount owed on the loan. Rather than wait for the information about this to be sent via mail, the car loan company could receive the information far faster via LexisNexis and contact the court to make a counter offer with the debtor or object to the motion.

“LexisNexis currently offers the only comprehensive, automated set of bankruptcy events data that is also customizable depending on the needs of the debt collector,” said Rob Fite, vice president and general manager, LexisNexis Receivables Management Solutions. “Benefits to the customer include operational efficiency, saved time and cost, reduced loss exposure due to more timely information about notices of assets and redemptions and reduced losses from errors and omissions caused by manual processing.”

Timely, accurate and relevant information is power to the company seeking to recover debt during a time when bankruptcies are more and more commonplace. LexisNexis provides the information needed: every case, every event, every day.

For more information about LexisNexis® Banko® Events Monitoring, please contact 866.528.0780.

This entry was posted on Monday, February 22nd, 2010 at 5:54 pm and is filed under Receivables Management Solutions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.