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Factors to address regarding credit scores in bankruptcy

On Behalf of | Aug 15, 2023 | Bankruptcy |

When facing prolonged bouts with monetary strain, many individuals may feel that pursuing relief from the trials of debt may be integral to protecting their financial futures. While outlets such as bankruptcy could help provide much-needed relief from similar hardships, some individuals in Mississippi might have questions about how this process might impact their credit. Knowing the factors to address regarding this aspect of bankruptcy could be vital to preparing to evaluate the situation and to choose a path for relief that focuses on one’s goals and needs for the future.

Factors to consider

One of the first factors to address may involve the notion that a bankruptcy filing will likely impact one’s credit score. However, the outcome might not be nearly as daunting as one imagines. Those who fall behind on monetary obligations may already be experiencing challenges in this regard. Seeking relief via such a path could help provide individuals with the tools to cultivate a brighter financial future by reducing monetary obligations and freeing up sources of income.

It may also be helpful to note that a bankruptcy filing may only remain on a person’s credit reports for up to ten years. Also, having a bankruptcy on record doesn’t necessarily mean that a person will not be able to obtain credit during this period. Those who pursue relief via similar paths may also be able to start taking steps to begin rebuilding their credit soon after the process is finalized.

Knowing what to expect

Those who are weighing the possibility of pursuing relief via bankruptcy but have questions about how this process might affect their credit could benefit from seeking advice in addressing their concerns. When facing similar challenges, a person might consider consulting with a bankruptcy attorney for insight on what to expect from this process. An attorney in Mississippi can work toward addressing all a client’s questions and needs and help choose a path for debt relief that best aligns with his or her interests and goals.