For many Tennessee residents, one of the most difficult aspects of filing for personal bankruptcy is concern over how that decision will impact their credit score. From the time of early adulthood, Americans are urged to develop and maintain a positive credit rating. It is undeniable that Chapter 7 bankruptcy will lead to an immediate drop in credit scoring. However, that decline can be improved over time, and the bankruptcy will eventually fall off of one’s credit report altogether.
In fact, a recent article took a look at economic statistics, and determined that approximately six million Americans will soon find that their Chapter 7 bankruptcy is no longer listed on their credit reports. Researchers say that bankruptcy filings peaked in the year 2010, largely based on the crash of the housing market and resulting economic instability. This year, many of those consumers will reach the seven year mark, and find that their bankruptcy is no longer listed on their credit reports.
Many of those individuals will secure a new mortgage and begin shopping for new home. Their improved credit score will play a significant role in that process. Even so, consumers should be aware that it does not take seven years to achieve an increase in credit scoring.
Credit repair efforts can begin immediately upon the conclusion of a Chapter 7 bankruptcy case. Individuals can begin implementing positive credit habits that will boost their score. Over time, many will emerge after bankruptcy with a credit score that is higher than they had before they encountered the financial turmoil that led to bankruptcy in the first place. For those in Tennessee who are concerned about how their credit will be affected by Chapter 7 bankruptcy, this information could be helpful.
Source: housingwire.com, “Disappearing bankruptcies could start new wave of homebuying“, Kelsey Ramirez, May 30, 2017