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Will bankruptcy help or hurt my future credit options?

On Behalf of | Feb 17, 2019 | What Bankruptcy Can Do |

If you are one of the many people in Tennessee who faces high levels of debt that you do not know how you will ever repay, the thought of filing for bankruptcy may well have crossed your mind. Before making the choice to pursue a bankruptcy, it is wise for you to understand what and bankruptcy may or may not be able to do for your financial future.

A bankrtupcy may be a means to having your debts discharged and, in so doing, this may actually give your credit rating a boost as your debt-to-income ratio will thereby improve. However, a bankruptcy alone is not sufficient to get your credit back in good health. NerdWallet explains that there are concrete steps you can take to help make this happen.

One of the things you will want to do is establish new credit accounts and use them wisely. This may be done by putting a small amount of purchases on a credit card every month and paying it off in full. You might need to start off with a secured credit card and work your way up to an unsecured card. When using new credit, it is best to keep your balance at less than 10 percent of the limit.

This information is not intended to provide legal advice but is instead meant to give residents in Tennessee who are struggling with excessive debt an idea of how bankruptcy may help them correct their financial path and what other steps they should take to rebuilt credit after a bankruptcy.