Because it is the quickest form of bankruptcy proceeding, and still preserves the mortgage lien of the lender, lenders prefer, if bankruptcy is to happen, that it be a Chapter seven proceeding.
Bankruptcy is a prison procedure, so it begins whilst the debtor files a petition with the applicable financial ruin courtroom. That is often executed through the help of a legal professional specialized in those types of instances.
Even as the principle benefit of bankruptcy is the removal of positive debts, the negative consequences are pretty adverse. The maximum apparent is an immediate big and poor effect on one's credit score rating, and financial disaster will continue to be to your credit file for 7-10 years.
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