The decision to file bankruptcy isn’t one to be taken lightly. It’s usually a last-resort option that comes after attempting other debt relief solutions. The bankruptcy process damages credit, limits access to loans, and can result in the loss of valuable items. It can also hinder future financial goals, for example, buying a vehicle or home, obtaining an employment and getting insurance. Financial advisors recommend exploring other debt relief options prior bankruptcy.
Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good thing is that most people can keep certain items that are essential such as their home and high-value vehicles. In addition, any court action taken for unpaid bills will likely be stopped when a person is declared bankrupt.
In general, individuals with regular incomes can choose to choose to file Chapter 13 to create a plan to pay off their debts within three to five years. The good news is that it blocks creditors from attempting to foreclose, take possession of or take wages as garnishments during this time.
With a robust and customizable bankruptcy processing solution such as Best Case by Stretto, loan service providers can automate the notification process for bankruptcy, monitor changes to account information and enhance communication with attorneys. This powerful tool scans nationwide bankruptcy databases in order to automatically discover changes and inform clients. It helps to reduce risks and prevent unnecessary operating expenses.
