Blog

Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

It is crucial to realize that bankruptcy shouldn't be taken lightly. It is usually the last option after trying other options to reduce debt. Bankruptcy ruins credit, limits access to loans and can cause the loss of valuable possessions. It can also hinder future financial goals, like buying a car or home, obtaining an visit employment and getting insurance. Financial advisors recommend looking into alternative debt relief options before contemplating bankruptcy.

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

In general, individuals with regular incomes are able to apply for Chapter 13 to create a plan to pay off their debts over three to five years. The good thing is that it prevents creditors from attempting to foreclose, take possession of or the wages of employees during this period.

With a robust and customizable bankruptcy processing software such as Best Case by Stretto, loan service providers can automate notification of bankruptcy, monitor changes to account data and improve communication with attorneys. This powerful tool searches comprehensive nationwide bankruptcy databases to automatically identify and notify clients of any changes. This helps them reduce risk and avoid unnecessary operational costs.