Commercial Collections Blog

Manage Delinquent Accounts

You’ve just tapped your last resource dry and still that one account sits unpaid. Recent figures show that the longer an account sits collecting only dust, the harder it will be to recover the unpaid balance. Therefore, choosing a professional commercial collection agency, such as Burt & Associates, to manage all your delinquent accounts is a very wise decision.

Statistics don’t lie. When your account hits 91 days, you’re 30% less likely to collect on it. So, what are you waiting for? Start collecting your commercial debt today with Burt & Associates, SAS70 certified specialists in business-to-business debt collection. Let Burt & Associates concentrate all of its know-how, comprehensive services and personal attention on getting your commercial debt collected… before the dust starts to settle. Call us today!

With warmest regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Unsecured Creditors Are Big Losers In Small-Company Bankruptcies

According to a recent study by a University of Chicago bankruptcy-law scholar, creditors in the smallest Chapter 11 cases, considered to be those involving assets of less than $200,000, “usually recover nothing”. The study concluded that Chapter 11 does nothing or next to nothing for ordinary general creditors in typical bankruptcy filings by small businesses. Small cases tend to involve only assets in the form of human capital, in contrast to larger bankruptcies, those involving assets of more than $5 million, which usually have valuable assets that can be sold. One of the major reasons that unsecured creditors fare poorly under small Chapter 11 cases is that for about two-thirds of companies with less than $200,000 in assets, taxes end up taking about a quarter of the secured debt.

The Credit Manager’s Q&A Corner

QUESTION: Explain how creditors take a chance when filing an involuntary bankruptcy petition against a debtor.

ANSWER: Creditors begin an involuntary bankruptcy case by filing a petition and a summons with the clerk of the U.S. Bankruptcy Court.The debtor then has 20 days to file objections.If that happens, the case then goes to trial.If no objection is filed, the bankruptcy proceeds.Creditors take a risk, however, filing such a petition because if the case does go to trial and if the court finds the petition was filed in bad faith, the court can then award monetary damages as well as attorney fees for the debtor.

Related Posts:

• Need Cash? – Hire a Business Debt Collections Agency So You Can Pay Your Bills
• Aggressive Collection Demands
• How to Collect an Outstanding Debt
• Cash Flow Optimizer – Past Due Account Collection
• Efficient Collections for Delinquent Accounts