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Knowing how a bankruptcy might affect one’s credit

On Behalf of | Aug 19, 2022 | Bankruptcy Law

While dealing with prolonged periods of monetary strain can be a stressful experience, sometimes preparing to take the necessary steps to protect one’s future can also be intimidating. In some cases, individuals in Maryland may even be hesitant to seek relief out of fear of the repercussions involved, such as the impact it might have on their credit score. Those who are exploring the possibility of seeking relief via bankruptcy could benefit from seeking insight in addressing this topic and on ways to start rebuilding their credit after finalizing the process. 

Credit score topics 

It is no secret that bankruptcy will affect one’s credit, but the impact might not always be as bad as one thinks and those dealing with debt may already be experiencing similar trials. While a bankruptcy filing might affect one’s ability to obtain new lines of credit, that does not mean it will be impossible. Even if a bankruptcy will remain on a person’s credit for up to 10 years, one might be able to begin rebuilding this aspect of life shortly after the process is complete.  

It may also be helpful to note that those who obtain relief may have fewer financial burdens to handle, which could help provide one with a greater ability to manage financial affairs. However, there are certain types of debt that might not be eligible for discharge via bankruptcy, and staying current on payments may prove integral to stave off future credit score concerns. Those who seek relief via similar paths may also find it vital to keep constant track of their credit scores, as this might help one identify and address any potential risks.  

Moving past reservations 

While filing for bankruptcy is a major financial decision, avoiding the process out of fear of the unknown might not always be the best path. Individuals in Maryland who have reservations about the process could benefit from consulting with a bankruptcy attorney for advice in thoroughly evaluating their situations and addressing their options. An attorney can work with a client in creating a strategy for relief that aligns with his or her needs and subsequently assist in navigating every step of the process.