Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

It is important to understand that bankruptcy shouldn’t be viewed lightly. It is usually the last option after having tried other ways to deal with debt. Bankruptcy can ruin credit, limit access to loans, and cause the loss or valuable possessions. It also impacts future financial goals such as purchasing an automobile or home and obtaining work insurance. Financial advisors recommend exploring alternatives to debt relief before considering bankruptcy.

Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good thing is that a majority of people are able to keep certain essential items such as their home and expensive vehicles. There’s also a good chance that any court action that has been initiated in relation to debts that are not paid will be stopped when someone is declared bankrupt.

Most people who have a regular income can choose to file for Chapter 13 which allows them to create a plan to pay off their debts over a period of three to five years. The good thing is that it stops creditors from trying to foreclose, take possession of or make garnishments on wages during this time.

Loan service providers who utilize a customizable and comprehensive bankruptcy processing software like Best Case by Stretto can automate bankruptcy notifications, track changes in account data and enhance communication with attorneys. This powerful tool searches comprehensive bankruptcy databases across the nation to automatically detect and inform clients of any changes, allowing them to reduce risk and avoid unnecessary operational expenses.

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