See Webinar announcement below

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Follow Up Question On Subscriber Filing Bankruptcy From January 22, 2104

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Ken,

    As a follow up to the recent commercial Burg & Fire subscriber that filed bankruptcy, I have a question regarding Residential Burg.  Typically if a resi customer files BK we get a notice from the courts but generally no communication from the customer.  Our policy is that we log it in the customer account and effectively modify the agreement to a “month to month” status that could terminate at any time.  We continue to provide service and bill at the regularly scheduled price and time.  We do not cancel the account or attempt to reach out to the customer in any way.  If they or their attorney contact us, we inform them that we did receive their legal notice and that they can cancel their service at any time, but that we need any termination requests in writing.  Is this a fair and legal policy?

    We feel that we already have the sunk cost investment in their home and we may as well continue providing service and billing them unless they request that we stop.  Most of our customers end up cancelling within a few months of a bankruptcy filing but some continue using their service and paying happily into the future. 

Best regards,

Sterling Barnes

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Answer

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    Actually your practice may violate the automatic stay imposed by section 362 of the Bankruptcy Code if you know about the bankruptcy and continue to bill your subscriber for pre petition debt.  There are different procedure for different bankruptcy filings and you should consult with bankruptcy counsel when you get a notice from the Bankruptcy Court so you know how to proceed.  A contract with an unexpired term may be an executory contract that you can compel the debtor to affirm or reject.  There are too many issues to address here.  Give me a call when you get your next notice.

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Question re Cable companies

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Ken,

    I have a question about how the cable companies are marketing their security services in our area (Brighthouse/Florida) and if they are violating any PSC rules by using their current “franchised” employees to market alarm systems to our customers.  When they arrive at our customer’s home to repair the cable service, they are soliciting taking over the alarm system.  My objection to this is the unfair advantage they have by using subsidized franchised employees to compete with a non franchised alarm industry.  Shouldn’t they have to have separate, non regulated employees to compete in an industry where their rates aren’t set by the county?  By comingling these employees’ duties, how do you determine if they aren’t using their local monopoly to subsidize their entrance into the security business?  I know other regulated businesses like Utilities have gotten into the security business, but I thought they had to establish separate operating entities to do this.  I am interested in your thoughts about this.

Troy D

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Response

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    I don't have answer for this one. Good point though.  The cable employees need to be qualified the same way as your alarm employees are qualified.  File a complaint if the aren't.

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Electronic contracts

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Ken

    One of the biggest complaints I get from consumers in the alarm business is the amount of paperwork that has to be passed back & forth & signed.  Your daughter, Jennifer,  helped me close the sale on my last company, and I want to begin with an electronic "edge" with my new company, and  being able to electronically execute documents would set me apart.

    My question is:  Is there anything wrong with electronically signing the contracts using a program such as Adobe Echosign or even simply scanning & emailing the documents?   I suppose that this question would apply both to liability and value both..

Thank you

Gary 

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Answer

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    Electronic contracts are just as good or better than paper contracts.  Just make sure you have them executed and stored properly.  You can use a service or other procedures to confirm the contract.  One advantage of on line electronic contracts is that the length of the contract generally isn't an issue; the subscriber just clicks through the on line document.

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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com.  Most comments and questions get circulated.

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WEBINARS

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Topic:  Integrating Quick Books with alarm company management software and credit card processing for RMR.  You will learn how to inexpensively automate and streamline your alarm business management using sofrware designed to work with Quick Books.  Hands on tutorial will demonstate how easy and useful this software can be.

 

When:  February 13, 2014 at 12 noon to 1 PM.

Register here:  https://attendee.gotowebinar.com/register/3856781481977174786

 

Moderator:  Ken Kirschenbaum

Panelists:  Mitch Reitman www.sicc.us;   Scott Taylor www.FI-Soft.com; Thomas Aronica  www.skybankfinancial.com

Who are the panelists:

    Scott Taylor, with Fi-Soft and manages the firms product development and partner relations activities..  Fi-Soft specializes in QuickBooks accounting software, training, and integrated solutions.  As a founding member of the Intuit Reseller Channel, Fi-Soft supports all versions of QuickBooks software and carries the highest level certifications from Intuit.  

    Mitch Reitman is a tax expert specializing in the alarm industry.  Besides accounting and tax work, he is an active and effective business consultant and alarm business broker.

    Thomas Aronica with SkyFinancial has a focus on credit card processing for the alarm industry including RMR processing, and integrates and works with Fi-Soft's Quick Books. 

Who should attend:  alarm company owners, office managers and those involved in alarm company nabagment, accounting and accounting records.  

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