It is essential to know that bankruptcy should not be viewed lightly. It is typically the last option available after attempting other options for debt relief. The bankruptcy process can damage credit, restrict access to loans and can cause the loss of valuable items. It can also impact future financial goals, such as buying a car or home, getting a job and getting insurance. Financial advisors recommend exploring alternative options for debt relief prior to contemplating bankruptcy.

Chapter 7 bankruptcy involves liquidating assets to pay creditors. The good news is that most people can keep certain items that are essential like their homes and expensive vehicles. Also, there’s a high chance that any court case that’s been commenced in relation to unpaid debts will be halted once a person is made bankrupt.

In general, those who earn regular incomes are able to file Chapter 13 to create a plan to pay off their debts in three to five years. It’s important to know that creditors can’t foreclose on your home, take possession of your property or garnish your paycheck during this period.

With a complete and flexible bankruptcy processing solution such as Best Case by Stretto, loan service providers can automate the notification process for bankruptcy, check for changes to account data and enhance communication with attorneys. This powerful tool searches vast bankruptcy databases across the nation to automatically discover and notify clients of any changes. This helps them reduce risk and avoid unnecessary operational costs.

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