‘Bankruptcy and Beyond: Credit Risk Management in an Uncertain Economy' webinar recap
In ‘Bankruptcy and Beyond: Credit Risk Management in an Uncertain Economy,’ Lance Wickham, President & CEO of BankruptcyWatch, and Colin Terry, Chief Operating Officer & EVP of Product at LoanPro, explored how modern technology is reshaping bankruptcy management. They discussed practical ways lenders can use real-time court data, automation, and strategic workflows to reduce risk, recover more from dismissed or discharged cases, and prepare for rising bankruptcy volumes driven by student loan repayment and economic shifts.
Here are some of the key learnings from the webinar:
- Traditional bankruptcy handling is inefficient—modern tools and data offer a smarter solution. Lenders often write off bankrupt accounts due to complexity and operational risk, leaving significant recoveries on the table. With new platforms like those from BankruptcyWatch and LoanPro, lenders can use real-time data to assess eligibility, automate decisions, and engage strategically in the bankruptcy process. This shift turns bankruptcy into a high-yield recovery strategy, allowing lenders to protect their legal rights while improving efficiency and outcomes—all without the burden of building costly internal solutions.
- Rising bankruptcy risk demands proactive strategy—ignoring it creates costly pitfalls. With student loan payments reinstated and federal collections ramping up, many consumers face financial strain, echoing triggers like divorce that often lead to bankruptcy. Discharging student debt remains difficult but may become easier, potentially increasing filings. In this uncertain environment, poor bankruptcy management exposes lenders to legal risk, compliance failures, and financial loss. Many lenders lack a clear policy or process, leaving them unprepared.
- Many lenders overlook key data that can improve both risk assessment and post-filing collections. By checking live court records at underwriting, lenders can flag recent or repeat bankruptcies far more efficiently than with traditional credit reports. On the servicing side, monitoring case outcomes is critical—dismissed bankruptcies often reopen the door for legal collections, yet half of unsecured lenders miss this opportunity. Filing claims when appropriate turns the court into an extension of collections. With modern tools like LoanPro, lenders can automate this process, improve oversight, and boost recoveries with less effort.
Watch the full webinar for more insights:
