It is important to understand that bankruptcy should not be viewed lightly. It is usually the last option available after attempting other ways to deal with i thought about this debt. The bankruptcy process can damage credit, limit access to loans, and result in the loss of valuable possessions. It could also affect future financial goals, like buying a car or home, obtaining an insurance policy or obtaining a job. Financial advisors advise exploring alternative options for debt relief prior to considering bankruptcy.
The most well-known type of bankruptcy is Chapter 7 which involves liquidating assets to pay creditors. The good news is that most people are able to keep their essential items like their home or high-value vehicle. There’s also a good possibility that any court action that has been initiated in relation to unpaid debts will be halted once the person is declared bankrupt.
Generally speaking, those with a regular incomes can opt to apply for Chapter 13 which allows them to devise an agreement to pay off their debts over a period of three to five years. The good thing is that it impedes creditors from attempting to foreclose, take possession of or take wages as garnishments during this time.
With a complete and flexible bankruptcy processing solution such as Best Case by Stretto, loan service providers can automate notification of bankruptcy, check for changes to account data and enhance communication with attorneys. This powerful tool scans extensive bankruptcy databases across the nation to automatically detect and inform clients of changes, helping them reduce risk and avoid unnecessary operational costs.
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