In our continuing effort to provide unparalled service and resources to our clients, Security Financial Solutions, LLC has provided our clients with this free, online Resource Center.
Here, our customers can find detailed information concerning many aspects of debt, collections,and recovery. Understanding the terminology and laws is one of the first steps towards building a BRUCE collections policy.
Bankruptcy is a legal proceeding that takes place in Federal Court and relieves the debtor of the responsibility of paying their debts or provides them with protection while attempting to repay all or a portion of the debt that they owe.
There are two types of bankruptcies — liquidation, in which the debtor’s debts are wiped out (discharged) and reorganization, in which the debtor provides the court with a plan for how they intend to repay their debts.
Both consumer and business liquidation bankruptcies are designated as Chapter 7. Consumer reorganization bankruptcy is called Chapter 13. Reorganization bankruptcy for businesses and consumers with a very high debt load is called Chapter 11. Bankruptcy Reorganization for family farms is called Chapter 12.
If one of your debtors files for Bankruptcy there are specific rules that you need to follow, but you do not automatically need to give up all hope of recovery. SF Solutions can help you evaluate each situation and recommend the most promising course of action.