BRM’s extensive
experience in managing Chapter 13 cases for creditors
secured by consumer goods has resulted in the
development of a recovery-driven approach to the Chapter
13 process. While the task of filing timely proofs
of claim and monitoring chapter 13 cases may seem simple
in concept, both secured and unsecured creditors
routinely miss bar dates or fail to respond to dismissal
notices which allow them to resume their collection
efforts. In addition, secured creditors (other
than auto lenders) rarely respond to “cram down”
valuations of their collateral which are significantly
below market value, despite the fact that they are often
represented by “national” law firms that are not willing
to hire local counsel to fight for their clients’ rights
in a jurisdiction where they are not licensed to
practice.
BRM works with its
clients to develop processes that insure bar dates are
not missed and that proper documentation accompanies
their timely filed Proofs of Claim. In courts
where electronic case filing (ECF) is available, BRM
files claims electronically and retains the original
claim pursuant to ECF requirements. BRM then
monitors the case with the Court and with the Chapter 13
Trustee, responding to any adverse event that may
significantly affect the potential monetary recovery on
the claim.
For BRM’s contingency
clients, BRM’s work is performed on a “no recovery, no
fee” basis. This means that credit grantors can
reduce internal staff currently used to process bankrupt
accounts and/or reassign employees to accounts with more
immediate recovery potential. This makes sense
particularly for unsecured creditors who often must wait
until the latter stages of a five-year repayment plan to
receive any funds. In addition, if the case is
dismissed prior to any funds being received, BRM simply
closes its file at no cost, and notifies its creditor
clients immediately that they may resume collection
efforts.
BRM’s process for secured
creditors goes well beyond claims administration.
Besides insuring that claims are filed timely and
properly to maximize recovery for its clients, BRM
closely monitors chapter 13 cases to insure that all
proposed valuations are reasonable, then selectively
opposes “cram down” valuations through its
Nationwide Proprietary Legal
Network.
On occasions where collateral is surrendered in partial
satisfaction of the chapter 13 claim, BRM’s repossession
unit,
Creditors Repossession Clearinghouse,
liquidates the property in a commercially reasonable
manner, allowing the creditor to offset its loss and
recover on the remaining unsecured portion of its claim.
