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Considering bankruptcy when credit scores are a concern

| Jul 31, 2019 | Chapter 7 |

The best decision for a given situation is not always obvious. In many cases, there are pros and cons that come along with each option that make it difficult to know what course of action would offer more help than harm. For some Louisiana residents, choosing to file for bankruptcy is one of these tough decisions because they worry about the harm that could come to their credit.

It is important to remember that when it comes to credit scores and bankruptcy, it is likely that a person considering bankruptcy does not have the best score to begin with. It is common for financial situations to have become so dire that individuals miss bill payments, which lowers credit scores, and default on loans, which also lowers credit scores. As a result, bankruptcy may not do as much harm as some think.

Additionally, credit can be rebuilt in many ways after completing the bankruptcy process. For instance, individuals could utilize secured credit cards, which allow them to use the cards in a similar way to a standard credit card but prevents overspending by having the cardholder make a deposit that acts as the credit limit. Plus, once individuals free themselves from their debt burdens, they may have the ability to put their income toward their monthly bills, and on-time payments can help improve scores.

Certainly, giving bankruptcy its due consideration and reviewing the possible pros and cons is wise. However, Louisiana residents may want to make sure that they have the right information before making assumptions about the process. Consulting with experienced attorneys could allow concerned parties to ask questions and gain reliable facts about what this process could do for them.

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