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 options. Bankruptcy could ruin credit, restrict access to loans, and result in the loss or valuable possessions. It can also hinder future financial business solutions for small businesses to work optimally goals, such as purchasing a car or home, obtaining an employment and getting insurance. Financial advisors suggest exploring other debt relief options prior bankruptcy.

The most common type of bankruptcy is Chapter 7 which involves liquidating assets to pay off creditors. The good news is most people are able to keep their essential items, such as their home or valuable vehicle. In addition, there’s a great chance that any court action that’s been commenced in relation to unpaid debts is halted if an individual is declared bankrupt.

Generally, individuals with regular income can choose to file for Chapter 13 which allows them to come up with a plan to pay off their debts over the course of three to five years. It is important to know that creditors cannot foreclose on the property you live in, or take possession of it. property or garnish your paycheck during this period.

With a robust and customizable bankruptcy processing tool like Best Case by Stretto, loan service providers can automate the notification process for bankruptcy, monitor changes to account information and enhance communication with attorneys. This powerful tool searches comprehensive bankruptcy databases across the nation to automatically discover and notify clients of any changes, helping them reduce risk and avoid unnecessary operational expenses.