Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

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The decision to file for bankruptcy isn’t one to be taken lightly and it’s usually a last-resort option that is used after trying other debt relief options. Bankruptcy could ruin credit, impede access to loans, and could result in the loss or valuable items. It can also hinder future financial goals like buying a car or home, getting an insurance or job. Financial advisors recommend looking into alternatives to debt relief before contemplating bankruptcy.

Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good news is that most people can keep their most important possessions, such as their home or valuable vehicle. Also, there’s a high chance that any court action that’s been filed in connection to debts that are not paid will be halted when a person is made bankrupt.

In general, people with a regular income can choose to file for Chapter 13 which allows them to devise an arrangement that will pay off their debts over the course of three to five years. The good thing is that it impedes creditors from trying to foreclose, take possession of or garnish wages during this time.

With a complete and flexible bankruptcy processing solution like Best Case by Stretto, loan servicers can automate bankruptcy notification, check for changes to account data and improve communication with attorneys. This powerful tool searches the entire nation’s bankruptcy databases to detect changes on a regular basis and notify clients of any changes. It helps reduce risk and avoid unnecessary operating expenses.

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