Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

It is essential to recognize that bankruptcy shouldn’t be taken lightly. It is typically the last option available after attempting other debt relief options. Bankruptcy can ruin credit, limit access to loans, and can result in the loss of valuable items. It also impacts future financial goals like buying cars or homes, obtaining employment and getting insurance. Financial advisors suggest exploring other debt relief options before bankruptcy.

The most well-known type of bankruptcy is Chapter 7 which involves liquidating assets to main differences between bancorp and whole bank pay off creditors. The good news is most people are able to keep their most important possessions like their house or a high-value car. Additionally any court action due to unpaid debts could be halted in the event of a person becoming bankrupt.

In general, individuals with regular incomes may choose to make a Chapter 13 to create a plan to pay off their debts over three to five years. It’s important to know that creditors can’t close on your home, repossess your property, or garnish your wages during this period.

With a comprehensive and configurable bankruptcy processing tool like Best Case by Stretto, loan servicers can automate the notification process for bankruptcy and monitor changes to account data and improve communication with attorneys. This powerful tool searches nationwide bankruptcy databases in order to detect changes automatically and notify clients of any changes. It reduces the risk of bankruptcy and eliminate unnecessary operating costs.