Bankruptcy Tracking Helps Limit FI Losses
Wilmington, DE-As the number of bankruptcies surges to record highs, banks and financial institutions are searching for ways to protect themselves and suppress their losses.
With Bankruptcy Tracker, the new service from Corporation Service Co. here, companies can now receive nearly instant notification if one of their customers has filed for bankruptcy.
According to the American Bankruptcy Institute, the number of consumer bankruptcies reached the highest mark since the fall of 2005. In July alone, 126,434 bankruptcies were filed, representing a 34% increase over July 2007 and an 8% increase over June's filings.
It is no surprise that businesses are also failing at a record pace. In the first quarter, 14,319 businesses filed for bankruptcy protection, representing the most active quarter in more than 15 years.
With CSC's new bankruptcy tracking service, banks are able to monitor their debtors and receive notification if one files in any bankruptcy court. When a bankruptcy is filed against a lender's debtor, CSC will send a prompt e-mail alert with key information about the filing.
With this information, banks can act quickly to ensure their losses are minimized or altogether prevented.