It is important to understand that bankruptcy should not be taken lightly. It is typically the last option available after having tried other options for debt relief. Bankruptcy could ruin credit, limit access to loans, and lead to the loss of valuable items. It also affects financial goals such as purchasing automobiles or a house or job and getting insurance. Financial advisors suggest exploring other options for debt relief prior to bankruptcy.
Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good thing is that the majority of people can keep essential possessions such as their home and vehicles of high value. In addition, there’s a great chance that any court proceeding which has been filed in relation to unpaid debts will be halted once a person is made bankrupt.
In general, those with regular incomes can opt to make a Chapter 13 to create a plan to pay off their debts within three to five years. The good news is that it impedes creditors from attempting to foreclose, repossess or the wages of employees during this period.
Loan servicers who use a configurable and comprehensive bankruptcy processing software like Best Case by Stretto can automate bankruptcy notifications, track changes to account information, and improve communication with attorneys. This powerful tool searches nationwide bankruptcy databases in order to discover changes automatically and notify clients of any changes. It helps to reduce risk and https://brittandcatrett.com/2020/03/28/small-business-is-the-best-start avoid unnecessary operating expenses.
