It is essential to know that bankruptcy shouldn’t be taken lightly. It is typically the last option after attempting other debt relief options. Bankruptcy can sabotage credit, make it difficult to access loans, and cause the loss or valuable items. It can also affect future financial goals, such as buying a car or home, getting a job and getting insurance. Financial advisors recommend exploring other debt relief options prior to bankruptcy.
Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good thing is that many people can keep their https://brittandcatrett.com main possessions, such as their home or expensive vehicle. In addition any court action due to unpaid debts is likely to be stopped in the event that a person goes bankrupt.
In general, those with regular incomes are able 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 foreclose on your home, seize your property, or garnish your earnings during this period.
Loan service providers who utilize a customizable and comprehensive bankruptcy processing solution like Best Case by Stretto can automate bankruptcy notifications, track changes in account data, and improve communication with attorneys. This powerful tool searches vast bankruptcy databases across the nation to automatically identify and notify clients of any changes, allowing them to minimize risk and avoid unnecessary operational expenses.
