Many Florida residents struggle for a considerable amount of time when it comes to finding the best way to handle their substantial debt. In the end, many people may choose to utilize Chapter 7 bankruptcy in hopes of getting their financial affairs under control. Though this process may prove exceedingly useful, it can also cause some setbacks in regard to credit scores.
Though credits scores are often lowered by bankruptcy filings, they do not have to remain low. There are several ways that individuals can work to immediately begin bettering their credit after completing bankruptcy. This means that even though a filing will remain on a credit report for up to 10 years, parties should not wait until this time to consider improving their credit.
One of the easiest ways to work on rebuilding credit after bankruptcy is to pay bills on time. This action can help improve payment history and, in turn, boost credit. Additionally, individuals may wish to consider taking out lines of credit. Though it may be somewhat difficult to obtain unsecured credit cards or loans, there are options for secured lines of credit that could have rebuilding benefits.
The idea of causing permanent damage to a credit score by filing for Chapter 7 bankruptcy may be a misconception that many Florida residents believe. This and other incorrect information regarding the process may be preventing many people from taking advantage of this debt relief option. This issue is why there is a great importance on obtaining the right information. Individuals interested in learning more about bankruptcy may wish to speak with experienced attorneys.
Source: fool.com, “How to Rebuild Credit After Bankruptcy“, Maurie Backman, Dec. 22, 2017