https://brittandcatrett.com/2022/01/04/consumer-and-small-business-solutions
The decision to file bankruptcy is not one that should be taken lightly and it’s typically a last resort option after having tried other debt relief solutions. The bankruptcy process can damage credit, restrict access to loans and can cause the loss of valuable items. It can also hinder the future financial goals of the person, like buying a car or home, obtaining an insurance or job. Financial advisors recommend looking into other debt relief options prior bankruptcy.
The most well-known type of bankruptcy is Chapter 7 which involves liquidating assets to pay creditors. The good thing is that many people are able to keep their main possessions like their home or expensive vehicle. In addition, any court action taken for unpaid bills is likely to be stopped if a person becomes bankrupt.
Generally speaking, those with a regular incomes can opt to make an application for Chapter 13 which allows them to come up with a plan to pay off their debts over a period of three to five years. It’s good to know that creditors will not close on your home, take possession of your property or garnish your wages during this period.
With a complete and flexible bankruptcy processing solution such as Best Case by Stretto, loan servicers can automate notification of bankruptcy and keep track of changes to account information and improve communication with attorneys. This powerful tool scans nationwide bankruptcy databases to automatically discover changes and notify clients of any changes. It helps minimize risks and prevent unnecessary operating costs.
