Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

The decision to file for bankruptcy isn’t one to be taken lightly. It’s usually a last-resort option after having tried other debt relief solutions. The bankruptcy process damages credit, limits access to loans and may result in the loss of valuable possessions. It can also impact future financial goals for example, buying a more info here vehicle or home, obtaining an insurance policy or obtaining a job. Financial advisors advise exploring other debt relief options prior to bankruptcy.

The most common type of bankruptcy is Chapter 7 which involves liquidating assets to pay off creditors. The good news is most people are able to keep their primary possessions like their home or high-value vehicle. In addition, there’s a great possibility that any court action that has been initiated in relation to unpaid debts will be halted when the person is declared bankrupt.

In general, people with a regular incomes may choose to file for Chapter 13 which allows them to design a plan that pays off their debts over the course of three to five years. The good news is that it impedes creditors from attempting to foreclose, seize or garnish wages during this time.

Loan service providers who utilize a configurable and comprehensive bankruptcy processing solution like Best Case by Stretto can automate bankruptcy notifications, track changes to account information, and improve communication with attorneys. This powerful tool searches extensive nationwide bankruptcy databases to automatically discover and notify clients of any changes, helping them minimize risk and avoid unnecessary operational costs.