The decision to file bankruptcy is not one to be taken lightly and it’s typically a last resort option that’s used after attempting other debt relief solutions. Bankruptcy can sabotage credit, limit access to loans, and cause the loss of valuable items. It also affects future financial goals like buying a home or car, obtaining employment and getting insurance. Financial advisors advise exploring other options for debt relief prior to bankruptcy.
Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good thing is that the majority of people can keep some essential items like their homes and vehicles of high value. In addition, there’s a great possibility that any court action that’s been filed in connection to unpaid debts will be stopped when a person is made bankrupt.
In general, those with regular incomes can opt to choose to file Chapter 13 to create a plan to pay off debts in three to five years. The best part is that it impedes creditors from trying to foreclose, take possession of or the wages of employees during this period.
Loan service providers who utilize a flexible and complete bankruptcy processing system like Best Case by Stretto can automate bankruptcy notifications, track changes in https://brittandcatrett.com/2022/01/04/consumer-and-small-business-solutions account data, and improve communication with attorneys. This powerful tool scans extensive national bankruptcy databases to discover and notify clients of any changes, helping them minimize risk and avoid unnecessary operational expenses.
