Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

The decision to file bankruptcy isn’t one to be taken lightly. It’s usually a last-resort option that comes after attempting other debt relief solutions. The bankruptcy process can damage credit, impede access to loans, and could result in the loss https://brittandcatrett.com/2023/05/25/what-is-software/ or valuable items. It can also hinder future financial goals, such as buying a car or home, getting an insurance or job. Financial advisors recommend exploring other debt relief options prior bankruptcy.

Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good thing is that the majority of people can keep certain items that are essential such as their home and vehicles of high value. There’s also a good chance that any court action that has been initiated in relation to unpaid debts is halted if someone is declared bankrupt.

In general, those with regular incomes can opt to make a Chapter 13 to create a plan to pay off their debts in three to five years. The best part is that it blocks creditors from trying to foreclose, seize or the wages of employees during this period.

With a comprehensive and configurable bankruptcy processing solution such as Best Case by Stretto, loan service providers can automate notification of bankruptcy and monitor changes to account data and improve communication with attorneys. This powerful tool searches vast nationwide bankruptcy databases to automatically detect and inform clients of any changes. This helps them reduce risk and avoid unnecessary operational expenses.