Untapped Profit Potential in Dismissed Chapter 13 Debt

Dismissed Chapter 13 debt is one of the untapped niche markets with excellent profit potential according to National Loan Recoveries, LLC, the nation’s leading buyer of dismissed Chapter 13 debt.

“We have been in this niche market for the last twelve years and have found it to be very lucrative” says Les Deak, Managing Director for NLR. He went on to add, “These debtors, because they are unable to qualify to file a Chapter 7, generally have assets and/or income which make their debts very attractive.”

Once a Chapter 13 has been filed, the debtor generally has five years to complete the court approved plan. If the debtor completes the plan as scheduled, then the case is Discharged and the debtor is free of any further obligation on the debts.

In many cases, for a variety of reasons, the debtor stops making payments. When this occurs, the case is Dismissed. In such a case, the protection of the bankruptcy court is removed and the debt is again due in full. The assets and/or income which would not allow the debtor to qualify to file a Chapter 7 liquidation, are now available as a source of recovery on the debt.

Once the accounts are dismissed, NLR purchases the accounts in bulk from major creditors and then collects on the portfolio through direct collections, litigation or resale to local, regional or national buyers. Buyers may purchase the debt at dismissal or after one or more collection efforts, depending on their preference.

Contact Les Deak at 203-708-8570 or email at RLDEAK@NLRLLC.COM.