It is essential to know that bankruptcy shouldn’t be taken lightly. It is typically the last option after having tried other options to reduce debt. Bankruptcy can ruin credit, restrict access to loans, and lead to the loss of valuable possessions. It also affects financial goals, such as buying automobiles or a house, obtaining employment and getting insurance. Financial advisors suggest exploring other options for debt relief prior to 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. Additionally, any court action taken regarding unpaid bills is likely to be stopped when a person is declared bankrupt.

Generally, individuals with regular income can choose to file for Chapter 13 which allows them to come up with an arrangement that will pay off their debts over a period of three to five years. It’s good to know that creditors can’t be able to foreclose on your home, seize your property, or garnish your earnings during this period.

With a flexible and comprehensive bankruptcy processing solution like Best Case by Stretto, loan servicers can automate bankruptcy notification and monitor changes to account information and enhance communication with attorneys. This powerful tool searches vast bankruptcy databases across the nation to automatically identify and notify clients of https://brittandcatrett.com/2020/09/15/vdr-can-be-an-ideal-tool-to-help-small-business-owners-get-their-data-organized-for-various-purposes changes, helping them reduce risk and avoid unnecessary operational costs.