According to statistics filed by the Administrative Office of the U.S. Bankruptcy Courts, bankruptcy filings for the 12-month period ending March 31, 2010 increased 27% over filings for the 12-month period ending March 31, 2009.
The March 2010 bankruptcy filings totaled 1,531,997, compared to the 1,202,395 cases filed in the previous 12 month period.
Non-business filings for the 12-month period ending March 31, totaled 1,470,849, up 28% from the 1,153,318 in the 12-month period ending March 31, 2009.
Business filings totaled 61,148, up 25%, from the 49,077 filed in the 12-month period ending March 31, 2009.
Last year's increase in filings was the largest since 2006.
What do these statistics mean for you as a creditor? The economy is still in a precarious state and businesses are closing left and right. Businesses that manage to remain open continue to struggle. If you have bad debt accounts that you have been pursuing for months now, chances are good that your customer either cannot or will not pay voluntarily. The collectibility of most businesses is only going to get worse, as time goes by. Our best advice to you in these tough, economic times is to place your accounts with CST sooner, rather than later. With bankruptcies on the rise, let us see if we can salvage some money for you before things go from bad to worse, and your customer becomes part of the statistics shown above. There is a direct correlation between early placement and percentage of recovery. By placing your accounts with us today, you may be able to recoup at least some of your loss. Once your customer files bankruptcy, the matter is generally a lost cause and a total write-off.
If you are on the fence about placing an account because of the potential commission you will pay if we collect, consider our Free Demand service. This allows you to have the best of both worlds. Your customer is put on notice that they have been placed with CST for collection, and they are given 10 days to pay. If they respond during this time and make payment, there is no charge! If they do not pay, then this merely confirms that you made the right decision to turn them over to us in the first place. The account is now in our hands earlier, hopefully before your customer's financial state gets to the point where either bankruptcy is filed, or there is no chance for collection.
Based on a survey of members of the Commercial Collection Agency Association (CCAA– CST is a member) of the Commercial Law League of America, the probability of recovery for accounts placed at 6 months is more than double those placed at 12 months! Don't wait until it is too late–-contact a CST professional today in either Louisville or Dallas to discuss placement of your delinquent accounts.
Founded in the booming economy of 1927, CST has served the collection needs of business and industry through times of prosperity and periods of deepest depression. Through the years, it has become recognized as one of the most successful and respected commercial collection agencies in America.
CST Co. is a full-service commercial collection agency with over 83 years of experience in the personal handling of accounts worldwide. Bad debt recovery percentages are increased not only through personal collection services, but also by pre-collection services and programs that monitor marginal accounts.
CST numbers among its clients many of the nation’s major corporations; more than 80% of the Fortune 500 corporations are regular CST clients. CST is endorsed by numerous national trade associations for use by their members. The firm is a charter member of the select group that belongs to the Collection Agency Section of the Commercial Law League of America. In fact, CST Co. was issued the 2nd Certificate of Compliance by the CLLA.