Many individuals have experienced the trials of financial difficulty at some point in life. Those who suffer from the burdens of debt may wish to pursue relief, potentially prompting a need to explore the available options, such as bankruptcy. However, individuals in Ohio who are considering bankruptcy may have concerns about how it will affect their ability to obtain credit in the future.
Bankruptcy will inherently have an impact on a person’s credit score, and might reduce his or her ability to obtain credit, even if only temporarily. However, those who experience significant monetary hardships may already be suffering in this area of life, and bankruptcy could lead many to a healthier financial situation in time. In addition, upon filing for bankruptcy, a person could be able to begin rebuilding his or her credit shortly after finalizing the process.
It may seem counterintuitive to dive back into debt after bankruptcy, but certain lines of credit, such as a mortgage or car loan, could be an essential part of life. While obtaining a loan might prove to be challenging shortly after finalizing a bankruptcy, it isn’t necessarily impossible. However, one may want to proceed with caution, as an approval for credit during this period could come with a price, such as higher interest rates.
Individuals who wish to pursue relief, but have concerns about how it will impact their lives, could benefit from obtaining guidance before deciding on a path. By speaking with a bankruptcy attorney, one could obtain advice on each available option, as well as their potential outcomes. An attorney in Ohio can evaluate a client’s financial situation and assist in pursuing a healthier financial future through bankruptcy.
Source: howstuffworks.com, “Will bankruptcy keep me from getting a loan?“, Laurie L. Dove, Accessed on Nov. 6, 2017