Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

The decision to file bankruptcy is not one that should be taken lightly. It’s usually a last-resort option that’s used after attempting other debt relief options. Bankruptcy can sabotage credit, limit access to loans, and cause the loss or valuable possessions. It also affects financial goals such as purchasing cars or homes, obtaining employment and getting insurance. Financial advisors recommend exploring other options to reduce debt before contemplating bankruptcy.

Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good thing is that the majority of people can keep some essential items like their homes and valuable vehicles. In addition, there’s a great possibility that any court action that’s been filed in connection to debts that are not paid is halted if the person is declared bankrupt.

Generally, individuals with regular incomes can opt to make an application for Chapter 13 which allows them to devise an agreement to pay off their debts over a period of three to five years. It’s important to know that creditors will not foreclose on your home, repossess your property or garnish your wages during this time.

The loan servicers who utilize an adjustable and comprehensive bankruptcy processing solution, such as Best Case by Stretto can automate bankruptcy notifications, track changes in account data, and improve communication with attorneys. This powerful tool searches nationwide bankruptcy databases to discover changes automatically and inform clients. It reduces risks and prevent unnecessary operating costs.

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