While contemplating the best way to handle one’s financial dilemma, a number of concerns come to mind. The typical South Carolina resident is concerned with how the financial crisis will affect his or her ability to meet current financial obligations. Additionally, if filing for bankruptcy is the answer, how long will it take for his or her credit score to recover? Finally, will he or she be able to qualify for a mortgage at some point in the future?
The simple fact is that by the time the average consumer files for bankruptcy, the credit score is already suffering. Bankruptcy will have an effect on the credit score; however, it also offers the opportunity to begin rebuilding one’s credit. After just one year from bankruptcy, it is possible for the individual to have a credit score of 640 or higher.
Furthermore, obtaining a mortgage within just a few years of bankruptcy is a possibility. In order to do so, the South Carolina resident will want to begin rebuilding his or her credit. This can often be done by obtaining a pre-paid credit card, using it, and paying the balance off each month. By doing this, the individual is able to show that he or she knows how to handle credit responsibly and is ready to take on a larger obligation.
There are numerous financial dilemmas facing South Carolina residents. The answer to each of these is not a one-size-fits-all issue. However, in many instances, bankruptcy may be the best option. Experienced legal counsel can review the situation and recommend the appropriate action.
Source: mpamag.com, “How long does it take homebuyers to recover from bankruptcy?”, Steve Randall, March 27, 2018