It is essential to recognize that bankruptcy should not be taken lightly. It is usually the last option after trying other debt relief options. Bankruptcy ruins credit, limits access to loans, and can cause the loss of valuable possessions. It also https://brittandcatrett.com/2022/01/04/risk-management-and-small-business/ affects financial goals such as purchasing cars or homes, obtaining employment and getting insurance. Financial advisors advise exploring alternative debt relief options before considering bankruptcy.
Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good thing is that most people can keep certain items that are essential such as their home and vehicles of high value. In addition any court action for unpaid bills will likely be stopped when a person is declared bankrupt.
In general, people with a regular incomes can opt to file for Chapter 13 which allows them to design an arrangement that will pay off their debts over the course of three to five years. It’s important to know that creditors are not able to close on your home, repossess your property, or garnish your earnings during this time.
With a comprehensive and configurable bankruptcy processing solution such as Best Case by Stretto, loan servicers can automate bankruptcy notification, monitor changes to account information and improve communication with attorneys. This powerful tool searches vast bankruptcy databases across the nation to automatically detect and inform clients of changes, helping them reduce risk and avoid unnecessary operational costs.