Many people living in Tennessee suffer from some form of debt. In fact, one recent report indicated that nearly 70% of the state’s population have some amount of medical debt. The state leads the country in medical bankruptcies because so many people are unable to repay the debts on their own.
You may be hesitant to pursue bankruptcy, but it is often the only way to get finances back on track. It can truly help you in the long run, but in the short-term, it can drastically reduce your credit score. This can make it much harder to get a good loan rate. Fortunately, after the court approves the bankruptcy, you can immediately start taking steps to boost your credit score.
Budget any remaining debts
Bankruptcy is a useful tool for eliminating medical and credit card debts. However, it does not have the power to get rid of every type of debt. For example, bankruptcy cannot wipe out student loan debt. You may still have some bills to pay each month, so you need to budget accordingly. You need to determine what your minimum payments are and pay it off each month. During this time, you should avoid taking on more debt, so you should not make any purchases with a credit card or seek out a payday loan.
Keep track of your credit report
After you complete the bankruptcy proceedings, it will take a month or two for the credit bureaus to reflect that in your report. Once this time comes, you can get a free credit check. You can see just how much of a hit your score took and make sure there are no errors on your paperwork. In the event you do catch an error, then you need to bring it to the attention of the bureau immediately. You want to make your score as high as possible, and you do not need someone else’s mistake bringing you down.
William E. Maddox, Jr. LLC, Attorney at Law is located in Knoxville, TN and serves clients in and around Knoxville, Oak Ridge, Louisville and Anderson County.
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