Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

The decision to file for bankruptcy is not one that should be taken lightly and it’s typically a last resort option that’s used after attempting other debt relief solutions. Bankruptcy can sabotage credit, impede access to loans, and cause the loss of valuable possessions. It can also hinder future financial goals such as purchasing a car or home, getting an insurance or job. Financial advisors advise exploring other debt relief options prior bankruptcy.

The most popular type of bankruptcy is Chapter 7 which involves liquidating assets to pay creditors. The good thing is that a majority of people are able to keep essential possessions such as their home and high-value vehicles. In addition, there’s a small business is the best start great chance that any court proceeding which has been filed in relation to debts that are not paid will be stopped when someone is declared bankrupt.

In general, those with regular incomes can opt to file Chapter 13 to create a plan to pay off debts in three to five years. The best part is that it prevents creditors from attempting to foreclose or garnish wages during this time.

With a comprehensive and configurable bankruptcy processing software such as Best Case by Stretto, loan service providers can automate notification of bankruptcy, monitor changes to account data and enhance communication with attorneys. This powerful tool scans nationwide bankruptcy databases to discover changes automatically and notify clients. It helps reduce the risk of bankruptcy and eliminate unnecessary operating costs.