Individuals who have been dealing with debt issues only to have balances continue to hang over their heads may feel as if they have no way out. Luckily, there are bankruptcy options that may help South Carolina residents get back on top of their finances. Of course, concerns may arise pertaining to how bankruptcy will affect an individual’s credit, but credit scores do not have to be permanently affected.
After filing for bankruptcy, individuals may be able to rebuild their credit scores. However, beginning the rebuilding process may be affected by which type of bankruptcy was filed. For individuals filing Chapter 7 bankruptcy, working on credit may begin almost immediately. This bankruptcy process typically only takes a few months to complete, and after debt is taken care of, parties may wish to work on raising their credit scores.
Chapter 13 is also an effective method for confronting debt, but this process takes a longer period of time. Chapter 13 bankruptcy usually spans the course of three to five years, and as a result, individuals may not be able to begin rebuilding their credit during that time. However, once the process has been completed, parties may wish to utilize the chance to rebuild their scores.
If fears of damaging credit scores are holding South Carolina residents back from considering bankruptcy as a viable option, knowing that they could rebuild their scores may help them moving forward. Both Chapter 7 and Chapter 13 bankruptcies may help qualifying parties effectively handle their debt in order to gain a better financial perspective. If individuals are interested in such proceedings, discussing their specific cases with experienced attorneys may be beneficial.
Source: nashville.com, “Bankruptcy and You: Short-term Credit”, June 2, 2016