People in Tennessee have struggled through a rough economic period just as have citizens in other states. With the nation experiencing an increase in bankruptcy filings during the recent recession, concerns about rebuilding credit after filing for Chapter 7 is shared by many. Despite reports of gloom and doom having a Chapter 7 bankruptcy on record does not preclude a consumer from obtaining new credit.
Bankrate notes that a bankruptcy can actually have a positive impact on a person’s creditworthiness. One of the biggest reasons for this is that the debt relief it provides immediately lowers the level of personal debt to income ratio, a critical factor in credit score ratings and credit decisions. Additionally, because a debtor will be unable to seek a bankruptcy for at least seven years after a Chapter 7 filling, creditors can view that debtor as a better risk than before the recent filing.
According to Daily Finance, consumers are urged to use Chapter 7 filings as learning experiences. Learning how to budget and committing to timely payments after a bankruptcy will go a long way toward opening the door to new credit opportunities. Many people find that they can obtain car loans and new credit cards with little problem as soon as a bankruptcy has been discharged. Monitoring credit scores and reports is important as well. Once a score surpasses 650, a consumer will have the best opportunity for good lending rates.
Tennessee residents who have experienced serious financial challenges should know that a fresh financial start really is possible. Get the facts about how to use bankruptcy to move forward in a better direction.