Tag: collection regulations

Professionals in the credit and collections business point to certain key elements that improve overall collectability of accounts once they reach the point when they are placed into collections. The factor that is nearly universally agreed upon is age of the account from date of last sale at the time when it’s placed into collections. There are, however, other important factors that should be considered, many of which begin before a sale ever takes place.

What is a Proof of Claim?
A Proof of Claim is a written assertion to the bankruptcy court, trustee, debtor and other interested parties that you, the creditor, wish to assert your rights to a distribution in a bankruptcy case. Filing a Proof of Claim may be your only avenue of potentially being paid by a bankrupt debtor.

Scenario: You have a customer who owes you money for a product provided months ago. They have ignored your letters and avoided your phone calls. Finally, you’re able to speak to your contact and she tells you, “Talk to my lawyer, Bill Jones at Jones & Associates!” This is followed by a prompt click and dial tone.

You may be aware there are several classifications of bankruptices, but do you know what each type means and what distinguishes them from one another? Having a basic understanding of bankruptcy classifications and their restrictions could play an important role in your collection efforts.