Facing debt is a common difficulty that most people deal with at some point in their lives, but some individuals get overwhelmed and feel it is too much to overcome. In many cases, the pressures of financial difficulties are so hard to bear that people may think that they have many fewer options than they truly have, or that their situation cannot improve, no matter what they do.
This is usually not the case, but it is not always easy to find the solutions one needs. If you have concerns about your financial world, especially as it concerns your credit score, you should take comfort in knowing that it is possible to raise your credit score over time, even after extreme financial measures such as bankruptcy.
An experienced attorney who understands the nuances of bankruptcy and other forms of financial recovery can offer personalized insight into your circumstances and identify and enact a plan to give you the relief you need and get your finances back on track.
Repairing credit
Bad credit does recover over time, if you abide by a few simple (but sometimes difficult) guidelines. First, it is wise to get a free copy of your credit report from each credit agency so that you can see exactly what information is on it.
All of the information that determines how the three credit agencies rate you is provided in your report, and the law guarantees that you can receive one free report from each agency each year.
Once you receive your report, you can scrutinize the information to determine if any of it is inaccurate, if the strikes against you were made in error or if any of the information requires updating. If you do find inaccuracies, you should carefully consider the steps you can take to dispute these inaccuracies with the reporting agency or the party who reported the harmful information.
Your credit will also improve over time as you make regular, timely payments to those you owe and with your recurring bills. As lenders see you establish a trend of paying your debts on time, then they are more likely to want to lend to you, causing your credit score to rise.
Bankruptcy and credit
If you choose to use bankruptcy, it may take a number of years to repair your credit, but it is not impossible. In brief, Chapter 7 bankruptcies remain on a credit report for 10 years, while Chapter 13 bankruptcies cycle off your report in only seven years.
Whatever your financial struggle may look like, you probably have more options than you think you do. As you consider how to move forward, consider all your options so as not to miss important opportunities to protect yourself and your interests.
