Does bankruptcy ruin future creditworthiness?
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Does bankruptcy ruin future creditworthiness?

On Behalf of | Jun 25, 2021 | Bankruptcy |

Having excessive debt is not an issue that affects only a small few. In fact, numerous people in Florida and other parts of the country struggle with their financial matters because they have a considerable debt balance hanging over them. These liabilities may have resulted from circumstances outside of their control, like facing a medical emergency, but they may seem impossible to pay back. Though bankruptcy could help qualifying individuals address their debt, many are worried that taking this route would ruin their credit.

Fortunately, bankruptcy does not have to have a permanent negative effect on a person’s credit. If individuals are vigilant, they can take steps after completing their bankruptcy case that allow them to rebuild their credit. It can certainly take time, but the effort is often worth it for those who are concerned with improved credit.

Some steps that interested individuals may want to consider when it comes to rebuilding credit include:

  • Reviewing and understanding their credit report
  • Keeping up with changes in their credit score
  • Using a co-signer to qualify for loans and lines to credit
  • Becoming an authorized user on someone else’s credit line
  • Keeping credit balances low
  • Applying for secured lines of credit
  • Considering a credit-building loan

Often, too many Florida residents and those elsewhere believe that bankruptcy will ruin their future credit. Luckily, that is not what has to happen, and if individuals are driven to improve their credit, it could get better over time. While the improvements may not occur over night, steady improvement could increase a person’s future creditworthiness after completing this debt relief process.

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