Far too many people struggle with personal debt. Their pride drives them to try to find a way to climb back to financial stability, but too often these individuals only find themselves falling deeper into debt.
Although bankruptcy can provide very real financial relief and a fresh financial start, the truth of the matter is that many people are worried that a bankruptcy filing is going to ruin their financial stability even after their debts are gone. This simply isn’t the case.
Rebuilding your credit after bankruptcy
One common concern is that bankruptcy will destroy your credit score forever, thereby making it impossible to secure an auto loan or a mortgage. While it’s true that a bankruptcy may ding your credit score for some years to come, there are steps that you can take to help rebuild your credit score, including each of the following:
- Stay current on all loans and credit cards that you have
- Obtain new credit that you know that you’ll qualify for, such as a secured credit card or being an authorized user on someone else’s line of credit
- Obtain a loan with the assistance of a co-signer
- Try to obtain some sort of job stability
- Check your credit scores to ensure that relevant outstanding debts have been erased
Although it can take some time, being diligent and smart in how you handle your finances post-bankruptcy can lead to improved credit scores and the fresh financial start that you’ve hoped for. So, be sure to research other ways that you can rebuild your credit score post-bankruptcy.
Do you need guidance pursuing your bankruptcy?
If you’re considering bankruptcy, then you might want to talk about it more with someone who can give you a realistic sense of what the process entails and what the possible outcomes might look like. That’s why law firms like ours are here ready to help.