Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

The decision to file for bankruptcy is not one to be taken lightly. It’s usually a last-resort option that is used after trying other debt relief solutions. Bankruptcy can ruin credit, limit access to loans and may result in the loss of valuable items. It can also affect future financial goals, for example, buying a vehicle or home, getting an insurance policy or obtaining a job. Financial advisors suggest exploring other debt relief options prior bankruptcy.

Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good news is that a majority of people are able to keep certain items that are essential such as their home and high-value vehicles. Also, there’s a high chance that any court proceeding that’s been commenced in relation to debts that are not paid will be stopped when someone is declared bankrupt.

Generally, individuals with regular income can make an application for Chapter 13 which allows them to devise an agreement to pay off their debts over the course of three to five years. The best part is that it prevents creditors from attempting to foreclose, repossess or garnish wages during this time.

With a complete and flexible bankruptcy processing software such as Best Case by Stretto, loan service providers can automate bankruptcy notification and keep track of changes to account information and improve communication with attorneys. This powerful tool scans extensive nationwide bankruptcy databases to automatically find and notify customers of any changes, helping them minimize risk and avoid unnecessary operational costs.