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Bankruptcy Solutions – Why Bankruptcy Is The Last Resort

https://brittandcatrett.com/2020/09/15/vdr-can-be-an-ideal-tool-to-help-small-business-owners-get-their-data-organized-for-various-purposes/

The decision to file bankruptcy isn’t one that should be taken lightly and it’s usually a last-resort option that is used after trying other debt relief options. The bankruptcy process can damage credit, restrict access to loans and may result in the loss of valuable items. It could also affect future financial goals such as purchasing a car or home, getting an insurance or job. Financial advisors advise exploring alternative options for debt relief prior to considering bankruptcy.

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

In general, those with regular incomes can choose to file Chapter 13 to create a plan to pay off their debts in three to five years. The good thing is that it stops creditors from trying to foreclose, take possession of or the wages of employees during this period.

With a comprehensive and configurable bankruptcy processing tool like Best Case by Stretto, loan service providers can automate notification of bankruptcy, check for changes to account data and improve communication with attorneys. This powerful tool scans extensive nationwide bankruptcy databases to automatically identify and notify clients of changes, helping them reduce risk and avoid unnecessary operational expenses.

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