Bankruptcy can be a welcome relief if you are drowning in debt. But bankruptcy also comes with a number of downsides. And one of these is that your credit score can take a significant hit.
A good credit score is incredibly crucial for your future financial well-being (including your ability to purchase property). As such, it is important that you understand how to repair your credit score after declaring personal bankruptcy.
How long will a bankruptcy filing remain on your credit report?
There are basically two types of personal bankruptcies you can file anywhere in the country: Chapter 7 and Chapter 13 bankruptcy. Each type of bankruptcy will remain on your credit report for a specific time period. Chapter 7 bankruptcy will generally remain on your credit report for 10 years while Chapter 13 will remain for seven years.
How can you repair your credit after bankruptcy?
Bankruptcy can hurt your credit score. Fortunately, you can take a couple of steps to rebuild your credit score after going bankrupt.
Adjusting after a financial challenge that led to you becoming bankrupt can be difficult. However, it is necessary. Having a budget that works for your income can help you live within your means without having to incur more debt.
Making debt-related payments on time, every time will also help you repair your credit after declaring bankruptcy. Late or missed payments will just hurt your credit further and will signal to creditors that your bankruptcy is not necessarily a one-time need.
Safeguarding your rights
Personal bankruptcy can give you a fresh start if you are overwhelmed by debt. Seeking legal guidance to learn more about Georgia bankruptcy laws can help you safeguard your rights and interests during and after declaring bankruptcy.