Think Chapter 7 bankruptcy will ruin future finances? Think again

Many Tennessee consumers struggle with certain types of debt, particularly unsecured debt like medical and credit card debt. These balances can quickly grow beyond a person’s control, leading to financial stress, accumulating interest and calls from debt collectors. Filing for Chapter 7 bankruptcy can help a person discharge many types of unsecured debt.

One thing that often keeps people from moving forward with a bankruptcy filing is fear that it will ruin their financial future. While a bankruptcy filing does stay on a credit report for up to 10 years, it is possible to rebuild a strong financial standing. After bankruptcy is complete and eligible debts are discharged, it can help to create and stick to a reasonable budget. It may also be helpful to avoid using credit cards excessively and to make sure to pay bills on time each month.

There are also steps a person can take to rebuild credit, such as adding positive accounts. People looking to rebound quickly would be wise to be sure they do not fall for scams presented by some types of credit repair companies. Being financially smart after bankruptcy can help a person remain relatively debt free and in control of one’s financial situation.

For many in Tennessee, Chapter 7 bankruptcy is the best option for their individual situation. A person dealing with overwhelming debt may want to learn more about the benefits of this choice and how to move forward after bankruptcy is complete. It can help to first discuss concerns about the financial future and all bankruptcy options with an experienced bankruptcy legal professional.