Think about credit restoration if you’re considering bankruptcy

On Behalf of | Jun 20, 2017 | Bankruptcy |

Who in South Carolina doesn’t know what it’s like to face financial challenges? More than likely most residents have run into money problems at some time or another, some worse than others. It’s astounding really, how a relatively minor money issue can quickly turn into complete financial disaster. All it takes is one unexpected medical emergency, loss of employment or even a joyful event, such as having a baby.

Even for those who try to keep their financial ducks all in a row, a fluctuating economy and increased cost of living can wreak havoc on a person’s bank account. When creditors start calling every day and credit cards get denied at points of purchase, it’s a sign that change is needed. Seeking debt relief may affect your credit score (if it’s not already tarnished). Therefore, it’s crucial to think ahead and plan to restore financial stability once your immediate situation is rectified.

Ideas for restoring credit after bankruptcy

If you determine that filing for bankruptcy is the most viable option for resolving your current financial problems, you may want to consider the following ideas so you’ll be prepared to restore your credit as time goes on:

  • Bankruptcy alleviates your debt; so, you’ll want to make sure to remove all debts marked as delinquent on your credit report.
  • If you discover incorrect information on your credit report post-bankruptcy, you may submit a written dispute to the appropriate officials.
  • Developing a strict budget helps many people get their bills under control once they’ve recovered from bankruptcy.
  • At least 35 percent of your credit score encompasses how timely you make payments for outstanding bills.
  • It may be possible to obtain a secured credit card after you have filed for bankruptcy. Special rules typically apply and it’s best to research this ahead of time.
  • Taking out a personal loan is another good way to build up good a credit score.

It also helps to be very wary of potential scam artists who may offer credit restoration services to you as you move forward after bankruptcy. Such schemes are rampant nowadays and those who fall prey to them usually wind up in worse financial shape than they were before they filed for bankruptcy. To avoid such problems, it helps to act alongside experienced guidance throughout the bankruptcy process.

In South Carolina and elsewhere across the nation, there are attorneys conversant in bankruptcy law. Such an attorney understands the devastation caused by serious financial problems that leave one feeling helpless and alone. Compassionate and knowledgeable guidance can ease the stress of navigating the bankruptcy process and can help set forth a new path toward a successful financial future.

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