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Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

It is crucial to realize that bankruptcy should not be viewed lightly. It is typically the last resort option after attempting other options for debt relief. Bankruptcy ruins credit, limits access to loans and may cause the loss of valuable items. It also affects financial goals like purchasing automobiles or a house or job and getting insurance. Financial advisors recommend exploring alternatives to debt relief before contemplating bankruptcy.

Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good news is that most people can keep essential possessions such as their home and valuable vehicles. Additionally, any court action taken due to unpaid debts could be halted in the event of a person becoming bankrupt.

In general, those who earn regular incomes may choose to make a Chapter 13 to create a plan to pay off their debts within three to five years. The best part is that it impedes creditors from trying to foreclose, repossess or make garnishments on wages during this time.

Loan servicers who use a configurable and comprehensive bankruptcy processing solution such as Best Case by Stretto can automate bankruptcy notifications, monitor changes to account information, and enhance communication with attorneys. This powerful tool searches across the nation’s bankruptcy databases in order to automatically discover changes and inform clients. It helps reduce risk and avoid unnecessary operating costs.

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