Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

The decision to file bankruptcy is not one to be taken lightly and it’s typically a last resort option that comes after attempting other debt relief options. Bankruptcy can ruin credit, impede access to loans, and result in the loss of valuable items. It could also affect future financial goals like buying a car or home, getting an insurance policy or obtaining a job. Financial advisors suggest exploring alternative debt relief options before considering bankruptcy.

Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good thing is that a majority of people are able to keep some essential items such as their home and expensive vehicles. In addition, any court action taken due to unpaid debts could be halted when https://brittandcatrett.com/2022/01/04/consumer-and-small-business-solutions a person is declared bankrupt.

In general, those with regular incomes can opt to file Chapter 13 to create a plan to pay off their debts over three to five years. It’s important to know that creditors cannot foreclose on your home, take possession of your property, or garnish your earnings during this time.

Loan service providers who utilize a customizable and complete bankruptcy processing system, such as Best Case by Stretto can automate bankruptcy notifications, monitor changes to account information, and improve communication with attorneys. This powerful tool scans extensive bankruptcy databases across the country to automatically detect and inform clients of any changes. This helps them minimize risk and avoid unnecessary operational expenses.