Examining How Credit is Affected by Bankruptcy – Trammell Law Firm - Bankruptcy in Nashville
While filing for bankruptcy does stay on your credit report for a period of ten years, it is still possible to rebuild your credit after you have filed. Your credit score is actually affected by a number of factors, including your payment history, outstanding debts, how long you’ve been using credit, and the types of credit that you use. This means that, while bankruptcy does affect your credit, it may not actually impact your score in the way you would expect. Learn how your credit is affected by bankruptcy and what you can do to boost your score with these tips.
It is important to realize that late payments and unpaid debts remain on your credit rating for approximately 7 years, which means that if you’re considering filing for bankruptcy—your credit score probably wasn’t that great to begin with. Rather than completely demolishing your credit score, filing for bankruptcy can actually provide you with a fresh start from the debts that are dragging your score down.
Another aspect to consider when it comes to bankruptcy and your credit report is the number of accounts being included in the filing. For example, an individual filing for bankruptcy with a large number of accounts will usually see a more significant decrease in his credit score than someone filing for bankruptcy with fewer debts. However, there are several ways to rebuild your credit score following bankruptcy, regardless of the number of accounts.
Working to rebuild your credit is an important part of the post-bankruptcy process, and it is often easier than it seems. Some great ways to rebuild your credit include paying bills on time, creating a realistic budget, and opening a new line of credit with a secured or prepaid credit card.
The best way to ensure that you are ready to file for bankruptcy is by consulting with your Nashville bankruptcy lawyer. Let the Trammell Law Firm help you understand your options and learn how to rebuild your credit after filing for bankruptcy. Visit us online or call our office at (877) 834-5209 to set up a consultation.
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