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 that’s used after attempting other debt relief solutions. The bankruptcy process can damage credit, restrict access to loans and may cause the loss of valuable items. It also affects financial goals like purchasing an automobile or home or obtaining a job, as well as getting insurance. Financial advisors recommend looking into other debt relief options prior bankruptcy.

Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good thing is that many people can keep their main possessions, such as their home or expensive vehicle. Additionally, any court action taken due to unpaid debts is likely to be stopped in the event of a person becoming bankrupt.

Most people who have a regular income can apply for Chapter 13 which allows them to design a plan that pays off their debts over the course of three to five years. The best part is that it prevents creditors from attempting to foreclose, take possession of or garnish wages during this time.

Loan servicers that use a customizable and complete bankruptcy processing solution like Best Case by Stretto can automate bankruptcy notifications, track changes in account data and improve communication with attorneys. This powerful tool searches comprehensive nationwide bankruptcy databases to automatically discover and notify clients of any changes. This helps them reduce risk and avoid unnecessary operational costs.

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