The decision to file bankruptcy is not one to be taken lightly and it’s usually a last-resort option after having tried other debt relief solutions. The bankruptcy process damages credit, limits access to loans and may result in the loss of valuable possessions. It also affects future financial goals like purchasing automobiles or a house or job and getting insurance. Financial advisors advise exploring other debt relief options before bankruptcy.
Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good thing is that a majority of people are able to keep certain essential items like their homes and vehicles of high value. Additionally, any court action taken due to unpaid debts could be halted when a person is declared bankrupt.
Most people who have a regular incomes may choose to apply for Chapter 13 which allows them to design a plan to pay off their debts over the course of three to five years. The good thing is that it blocks creditors from trying to foreclose, repossess or garnish wages during this time.
Loan servicers who use a configurable and comprehensive bankruptcy processing solution like Best Case by Stretto can automate bankruptcy notifications, monitor changes to account data and improve communication with attorneys. This powerful tool searches nationwide bankruptcy databases in order to detect changes on a regular basis and notify https://brittandcatrett.com/2020/09/15/vdr-can-be-an-ideal-tool-to-help-small-business-owners-get-their-data-organized-for-various-purposes clients. It helps to reduce risk and reduce unnecessary operating expenses.
