Bankruptcy and the Impact Debt Can Have On One’s Credit Score

Constantly dealing with overwhelming amounts of debt could have a substantial impact on a person’s quality of life. Many individuals in Ohio who experience prolonged periods of financial hardship may wish to pursue relief through bankruptcy, but they may have concerns about the impact it will have on their credit score. While filing for bankruptcy will inherently affect this area of life, it may still be the healthiest financial choice available.

Filing for bankruptcy is a major financial decision that requires a great deal of thought. A bankruptcy will remain on a person’s credit report for as many as 10 years depending on the chapter that is filed. While a similar decision may have an impact on one’s credit score, those who are struggling to keep up with monetary obligations may already be experiencing a similar outcome or worse.

With bankruptcy, one could begin rebuilding his or her credit score shortly after finalizing the process. Obtaining new lines of credit during this period could prove challenging, but it isn’t necessarily impossible. By maintaining a positive payment history on all accounts following bankruptcy, one may find that a similar choice could lead to a better financial situation in time. In addition, the discharge of certain unsecured debts through bankruptcy could help an individual gain more control over other monetary obligations.

The burdens of debt can place an individual under a substantial amount of financial stress. Those who wish to seek relief could benefit from speaking to a bankruptcy attorney for guidance on making informed decisions regarding their financial futures. An attorney in Ohio can address all a client’s concerns and needs and provide advice on choosing a path with which to pursue relief from debts.

Source: fool.com, “How to Rebuild Credit After Bankruptcy“, Maurie Backman, Dec. 22, 2017