Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

The decision to file bankruptcy is not one that should be taken lightly and it’s usually a last-resort option after having tried other debt relief solutions. Bankruptcy can sabotage credit, impede access to loans, and lead to the loss or https://brittandcatrett.com valuable items. It can also affect future financial goals, such as buying a car or home, obtaining an employment and getting insurance. Financial advisors recommend exploring other debt relief options prior to bankruptcy.

The most well-known type of bankruptcy is Chapter 7 which involves liquidating assets to pay off creditors. The good thing is that many people are able to keep their main possessions like their home or expensive vehicle. In addition any court action in relation to unpaid bills will likely be halted in the event that a person goes bankrupt.

In general, individuals with regular incomes may choose to make a Chapter 13 to create a plan to pay off debts in three to five years. It’s good to know that creditors will not be able to foreclose on the property you live in, or take possession of it. property or garnish your wages during this time.

With a complete and flexible bankruptcy processing solution such as Best Case by Stretto, loan servicers can automate bankruptcy notification, keep track of changes to account information and improve communication with attorneys. This powerful tool searches the entire nation’s bankruptcy databases in order to automatically discover changes and inform clients. It helps minimize risk and reduce unnecessary operating costs.