Loan Servicing

Scrub. Now. Here’s Why.

Lance Wickham

Lance photo

Lance Wickham

Oct 31 20223 minute read

Servicing bankruptcies without a scrub is like hiking at night—risky. Servicers who skip bankruptcy scrubs are in the dark when it comes to revenue opportunities, notifications that slip through the cracks, and important bankruptcy workflows. The result can be disastrous and represent a serious risk for a creditor. Here are 3 reasons we recommend every lender take advantage of our free scrub offer:

1. Make sure your statuses are up-to-date

Instantly view all of the bankruptcies in your portfolio. We scrub each consumer for bankruptcy information so you can quickly identify which bankruptcies are still open and find the outcome of closed cases. Some servicers refer to scrubbing as a sleep enhancer, and while we have absolutely no medical expertise, we share a lender's sigh of relief when they see all of their relevant bankruptcy information compiled and up-to-date in a single table.

2. To Increase Revenue

Know which bankruptcies you can still respond to and get paid from. Don’t be the lender who writes off piles of money because they don’t bother to look. Scrub your portfolio and identify dismissed cases so you can easily restart collections efforts. Get a list of all chapter 13 cases and chapter 7 cases with assets to start filing claims. Make the court your collection system. Your bank account will thank you.

3. To catch bankruptcies filed before servicing

Unless you have carefully engineered your bankruptcy servicing process, you have a blind spot between origination/acquisition and servicing that can cost you some serious dough. It is surprisingly common for a bankruptcy to be filed right after a loan is originated or acquired. These bankruptcies often don’t list the new creditor because the petition had been prepared days or weeks before the loan. Unfortunately, your (non-BankruptcyWatch) real-time bankruptcy monitoring service doesn’t have your back because these bankruptcies are filed before the consumer is uploaded for monitoring. Don’t be the lender that comes to us AFTER the stay violation lawsuit 😒

Every creditor should scrub their portfolios and we are committed to making this accessible. Fill out the following form and we’ll help you get your first scrub free.