If you are one of the many people in Tennessee who is considering filing for bankruptcy, you may be concerned about the impact this may have on your credit and your future. Your concerns are valid and it is important for you to understand the long-term implications of bankruptcy. Chapter 13 bankruptcy can give you a fresh start but you have to be careful and take the right steps to take full advantage of this.
As explained by Bankrate, you may need to wait for a while after your bankruptcy before trying to get new credit. However, after a period of time getting new credit is exactly what you need to do. You may want to start with a secured credit card and getting one new piece of credit at a time is recommended. Obtaining or seeking too much credit at once may raise a flag to lenders.
As you prove your ability to repay credit on time and in full, you will become eligible for better rates and terms. You should also put effort into building a good savings cushion as this is another way of showing to lenders that you have learned from your past experiences. Saving and wisely using credit together can prove your future creditworthiness. This will bode well for you when you want to buy a home or a car eventually.
This information is not intended to provide legal advice but is instead meant to help residents in Tennessee understand how they can use a Chapter 13 bankruptcy to get back on their financial feet and face a brighter future.