There are many details regarding certain debt relief methods that may hold people back from using them. For instance, many Louisiana residents may worry about how long a Chapter 7 bankruptcy filing will stay on their record. While this is certainly a valid concern, individuals may want to remember that the mark is not permanent, and they can do their part to rebuild after filing.
If individuals do not have a steady stream of income or cannot pay back their creditors for other reasons, they may qualify for Chapter 7 bankruptcy. This type of bankruptcy has a more serious impact on credit scores because no repayment takes place. Additionally, this detail on a credit report will remain for 10 years, but accounts discharged in the bankruptcy process will be removed earlier.
Though 10 years can certainly seem like a long time, parties do not have to wait until the bankruptcy mark drops off to start rebuilding credit. Individuals can make sure that they pay their current bills on time and work to rebuild credit through secured lines of credit, like a secured credit card. Additionally, individuals could ask a family member to cosign a loan to help obtain approval, and the individuals can repay their loans themselves and improve their credit.
Many people fear that filing for Chapter 7 bankruptcy will ruin their credit forever. Fortunately, that is not the case, and this debt relief method could help qualifying Louisiana residents find financial freedom. If individuals are interested in gaining more information on this relief method and its effects, they may want to consult with knowledgeable attorneys.