The decision to file bankruptcy is not one to be taken lightly and it’s usually a last-resort option that is used after trying other debt relief solutions. The bankruptcy process damages credit, limits access to loans and may cause the loss of valuable items. It also impacts future financial goals, such as buying a home or car or obtaining a job, as well as getting insurance. Financial advisors suggest exploring alternative debt relief options before considering bankruptcy.
Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good thing is that many people are able to keep their main possessions like their home or valuable vehicle. Additionally any court action for unpaid bills is likely to be stopped in the event that a person goes bankrupt.
In general, those with regular incomes can choose to make a Chapter 13 to create a plan to pay off their debts within three to five years. It’s important to know that creditors cannot be able to foreclose on your home, repossess your https://brittandcatrett.com/2021/07/08/generated-post property, or garnish your wages during this time.
With a flexible and comprehensive bankruptcy processing software such as Best Case by Stretto, loan servicers can automate the notification process for bankruptcy, monitor changes to account information and enhance communication with attorneys. This powerful tool searches the entire nation’s bankruptcy databases to detect changes automatically and notify clients. It helps to reduce risk and reduce unnecessary operating expenses.
