Curious how automation is changing bankruptcy legal services?
EVERYTHING. From document preparation to creditor notification, technology is revolutionizing commercial insolvency cases.
Here’s what you need to know…
Bankruptcy filings are surging. In fact, business filings up 22.1% in 2024. Law firms and insolvency practitioners are desperate to find faster ways to work through growing caseloads.
Enter automation.
Bankruptcy automation tools promise to make the entire process quicker, cheaper, and more accurate.
In this article we will cover:
- Why Automation Is Critical For Bankruptcy Proceedings
- The Technologies Powering This Shift
- How Law Firms Are Responding
- What Automation Means For Businesses In Insolvency
Let’s dive in.
Why Automation Is Critical For Bankruptcy Proceedings
Commercial bankruptcy cases involve stacks of paperwork. There are creditor lists, asset schedules, financial statements, court filings. If you or your business need professional bankruptcy legal services, you need practitioners that can move quickly without making expensive mistakes.
Arkansas Business Bankruptcy cases aren’t any different than cases filed in other states. In fact, they require even more attention to detail due to state specific exemptions and regulations.
The problem?
Doing things manually just takes too long.
Think about how many documents are filed in a commercial bankruptcy case. We’re talking thousands of documents and scores of deadlines. Miss one deadline and you can kiss that restructuring plan goodbye.
Automation helps with this. When you automate, you take tasks that would otherwise be done manually and have software perform them flawlessly every single time.
Document assembly, deadline alerts, automatic notifications. These are just some of the things that can be automated to drastically reduce the margin of error and increase speed.
The Key Technologies Driving Change
Like any other service industry, bankruptcy practice is being reshaped by technology. Different tools solve different problems plaguing the bankruptcy process.
Here’s how lawyers are using technology to work faster and smarter.
Document Automation
Preparing legal documents used to take attorneys hours. Not anymore.
Software platforms can assemble even the most complex legal documents in minutes. Information is pulled from client intake forms and dropped into preset document templates.
Voila.
Predictable faster turnaround times and minimal data entry errors.
AI-Powered Analysis
Bankruptcy law firms are harnessing the power of artificial intelligence. In fact, AI adoption among law firms tripled from 11% to 30% from 2023 to 2024.
AI boasts lots of benefits for law firms, but one advantage often goes overlooked.
AI can rapidly analyze massive amounts of financial data to predict case outcomes. Meaning your practitioner can assess your situation quickly and start developing the most optimal strategy from day one.
Workflow Automation Software
The best bankruptcy software connects every step of the process. Client intake, document prep, court filing, creditor notification. Everything.
No more juggling cases through multiple disjointed software solutions. Bankruptcy software helps firms seamlessly integrate every aspect of the process.
Automated Creditor Notifications
Did you know there was once a time lawyers had to manually call and send letters to every creditor notifying them about your bankruptcy? Unbelievable.
Technology now allows firms to automate creditor notifications with scheduled emails and secure portals. Creditors get updated faster. Firms save hours upon hours of work.
How Law Firms Are Adapting To Automation
Not every bankruptcy law firm is moving at the same pace. While many firms have adopted these technologies, some are lagging behind.
Law firms that are winning now are…
- Investing in dedicated software
- Training staff to use new technologies
- Restructuring internal workflows around automation
- Tracking metrics to prove the value of automation
These law firms realize that incorporating technology gives them a competitive edge.
They’re able to handle more cases with the same number of staff while delivering better results.
What Automation Means For Businesses In Insolvency
If your business is facing financial hardship and needs to file bankruptcy, automation is good news.
Here’s how it benefits you.
Cases Get Done Faster
Every step of the bankruptcy process is accelerated when you work with an automated system. Documents are prepared quicker. Court filings are done on time. Creditor negotiations aren’t delayed by manual errors.
Speed is crucial when you’re in financial distress. The longer your case takes, the more you spend on legal fees and the more uncertain your future becomes.
You Can See What’s Going On
Bankruptcy software allows for real time tracking on the status of your case. No more waiting by the phone or wondering when deadlines are.
Everything is available to you at your fingertips.
Legal Fees Are Lower
When automation is done right, less manpower is needed to handle routine tasks. And the less man-hours it takes your practitioner to work on your case, the less you pay.
But there’s a bigger picture…
Imagine a world where quality bankruptcy legal services are accessible to even more businesses. This is what automation allows.
If law firms save time and money by streamlining their services, they can pass those savings along to you. Suddenly, companies that may not have been able to afford legal representation can receive quality bankruptcy legal services.
There Are Fewer Mistakes
Automation is perfect. Software doesn’t make typographical errors. It doesn’t miss deadlines. It doesn’t file a document with the wrong court.
When you work with automated bankruptcy legal services, you can have peace of mind that your case is being handled correctly.
The Future Of Automated Insolvency Proceedings
Thinking about how cool it would be if there was some type of technology that created an unalterable record of all transactions during bankruptcy? Well…
Researchers are looking into using blockchain technology to track every financial transaction that occurs during the life of a bankruptcy case.
There’s tons of potential for technology to take bankruptcy practice to the next level. Here are some other innovations to look out for:
- Advanced machine learning to help predict successful restructuring plans
- Integrated software that can communicate with court systems, banks, and accounting software
Making The Right Choice
If you find yourself in need of bankruptcy legal services, make sure you hire a firm that uses automation to their advantage.
Ask prospective firms these questions…
Do you use case management software? Do you provide online portals for clients? How does technology make your service faster? Can you show me how you’ve improved efficiency with technology?
You deserve nothing but the best when it comes to your business. Don’t settle for inefficient bankruptcy legal services that waste your time.
Conclusion
There’s no denying automation is changing commercial insolvency practice.
And frankly, it’s about time.
Automation allows commercial bankruptcy cases to be handled quicker, cost less, and have better overall results.
If your business is facing financial hardship, take comfort in knowing there are bankruptcy legal services out there that can expedite your case through insolvency.
Law firms that don’t incorporate automation soon enough are going to get left behind.
And they’re already falling behind.
This isn’t speculation. It’s happening as we speak.
