If you lie awake at night worrying about money and you are beginning to see your financial troubles affecting nearly every area of your life, you may be ready to make a change. There are only so many ways you can cut back on your budget and so many hours in a day to take on extra work.
Perhaps you have researched your alternatives for debt relief, but your search left you with more answers than questions. You may have even found misinformation that left you confused and anxious.
Bankruptcy and your credit score
Bankruptcy is an option you may have looked into. Through Chapter 7 or Chapter 13, you may be eligible to seek the discharge of some of your debts or a reorganization of what you owe so that your debt is more manageable. However, you hesitate to take the steps to file because you worry about what bankruptcy will do to your credit.
Sometime in the future, you hope to be able to buy a house or you know you will need a new car before too long. With a bankruptcy on your credit report, you may think you will never be able to obtain a loan. This is not necessarily true. As soon as you begin the bankruptcy process, you can start to rebuild your credit. You can do this by obtaining a secured credit card or other lines of credit designed specifically for people in your situation.
While it is true that the bankruptcy will remain on your report for up to 10 years, every positive action you take, such as making payments on time and keeping your credit ratio low, improves your rating in the eyes of many creditors. With careful spending and financial planning, you may be able to achieve a strong credit rating in a relatively short time.
How to get started
With each positive step, you move further away from the negative marks on your credit rating. While those discharged accounts will likely remain on your report for up to 10 years, they become less of an influence on your score as you add positive reports to your rating.
You may still have questions about your circumstances and the best option for your situation. Taking your concerns to an experienced Texas attorney is one step you can take to obtain the answers your need to make an informed decision.