It is essential to know that bankruptcy should not be taken lightly. It is typically the last option available after having tried other ways to deal with debt. Bankruptcy can ruin credit, limit access to loans and may https://brittandcatrett.com/2021/07/08/generated-post/ cause the loss of valuable items. It also impacts future financial goals like buying a home or car or obtaining a job, as well as getting insurance. Financial advisors recommend looking into alternatives to debt relief before considering bankruptcy.
Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good news is that a majority of people are able to keep their main possessions like their house or a high-value car. In addition, there’s a great chance that any court proceeding that’s been commenced in relation to debts that are not paid will be stopped when an individual is declared bankrupt.
Generally speaking, those with a regular income can choose to make an application for Chapter 13 which allows them to create a plan to pay off their debts over a period of three to five years. It’s important to know that creditors are not able to take over your home, take possession of your property or garnish your wages during this period.
With a comprehensive and configurable bankruptcy processing solution such as Best Case by Stretto, loan servicers can automate notification of bankruptcy and monitor changes to account information and improve communication with attorneys. This powerful tool scans extensive bankruptcy databases across the country to automatically identify and notify clients of any changes, helping them minimize risk and avoid unnecessary operational costs.