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Repairing a credit score after bankruptcy

On Behalf of | May 1, 2019 | Chapter 13 Bankruptcy

Lots of Oregon residents are struggling with debts they are unable to repay. While personal bankruptcy may provide an option for debt relief, many are wary of taking the hit to their credit reports that come with the option. However, these debtors may still begin to suffer serious credit damage, especially if late payments or unpaid bills begin to rack up. This means that debt-resolving bankruptcy can actually improve some people’s credit scores in the long run.

The impact of bankruptcy on a credit score varies and changes over time. While a Chapter 7 bankruptcy remains on a person’s credit report for 10 years, a Chapter 13 bankruptcy, which involves structured repayments, remains on a credit report for seven years. People suffering from the worst credit issues, including large unpaid bills and extensive late payments, may even find that the impact of a bankruptcy raises their credit score instantly, even if it keeps them in a lower credit bracket. In any case, a debtor can work to rebuild their credit scores after bankruptcy and get back on the path to a solid credit rating.

People can use personal loans, secured credit cards and instruments designed for credit repair to enhance their credit scores after bankruptcy. Adding new items with a positive payment history and limited utilization will improve credit, even relatively shortly after a bankruptcy. Within a few years after the process is completed, an individual may again find themselves eligible for a range of credit offers. They will also see declining interest rates as they develop a positive credit history.

Overwhelming debt can leave people feeling out of control of their lives and looking for a solution. A bankruptcy attorney can provide advice on the options available to help move toward a new financial future.


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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 22 years.