The decision to file for bankruptcy is not one to be taken lightly. It’s typically a last resort option that comes after attempting other debt relief solutions. Bankruptcy can sabotage credit, impede access to loans, and cause the loss or valuable possessions. It also impacts future financial goals such as purchasing automobiles or a house and obtaining work insurance. Financial advisors suggest exploring other debt relief options prior bankruptcy.
Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good news is that most people can keep certain items that are essential such as their home and high-value vehicles. Additionally any court action regarding unpaid bills will likely be halted in the event that a person goes bankrupt.
In general, individuals with regular incomes can choose to choose to file Chapter 13 to create a plan to pay off their debts in three to five years. It’s important to know that creditors can’t foreclose on the property you live in, or take possession of it. property or garnish your paycheck during this period.
Loan servicers that use a customizable and comprehensive bankruptcy processing software like Best Case by Stretto can automate bankruptcy notifications, monitor changes in account data and improve communication with attorneys. This powerful tool searches extensive nationwide bankruptcy databases to automatically detect and inform clients bankruptcy solutions of any changes, helping them reduce risk and avoid unnecessary operational expenses.