It is essential to recognize that bankruptcy should not be viewed lightly. It is typically the last option available after trying other options for debt relief. Bankruptcy can ruin credit, make it difficult to access loans, and could result in the loss or valuable items. It can also hinder future financial goals such as purchasing a car or home, obtaining an employment and getting insurance. Financial advisors recommend exploring other options to reduce debt before contemplating bankruptcy.
Chapter 7 bankruptcy involves liquidating assets in order to pay creditors. The good thing is that a majority of people are able to keep certain essential items such as their home and valuable vehicles. In addition any court action for unpaid bills will likely be stopped in the event of a person becoming bankrupt.
In general, those with regular incomes can opt to file Chapter 13 to create a plan to pay off their debts over three to five years. The good thing is that it impedes creditors from trying to foreclose, take possession of or take wages as garnishments during this time.
With a robust and customizable bankruptcy processing software such as Best Case by Stretto, loan servicers can automate notification of bankruptcy, keep track of changes to account information and enhance communication with attorneys. This powerful tool searches vast nationwide bankruptcy databases to automatically find and notify customers of any changes. This helps them reduce risk and avoid unnecessary operational expenses.
https://brittandcatrett.com/2022/01/04/risk-management-and-small-business
