The average American citizen, whether residing in Laurel, Maryland, or elsewhere, is always wary of what does and does not affect his or her credit score. While it may not be possible to track this score on a continuous basis, it is easy to understand that huge debts have a significant negative impact. Sadly, some people are unable to clear their debts and thus force to declare bankruptcy, which means that it will take awhile for their credit score to be restored to former levels. This can be a slow and cumbersome process, which can take up to a decade.
The economic downturn of 2008 made foreclosure and bankruptcy household words, as many Marylanders learned all too well. Debts of all kinds kept piling up, and, no longer able to pay mortgages, many lost their homes. From the perspective of a credit bureau which compiles the data for a credit report, such foreclosures are, along with bankruptcies, a black mark. Not only are borrowers at rock bottom in terms of finances, there is also little chance that they will be able to get further credit immediately, since the same credit report circulates among various agencies. However, depending on the circumstances, lenders may be able to rehabilitate their credit history.
Bankruptcies may not necessarily be a shortcut out of debt. The bankruptcy court may require individuals to sell off assets that are not essential to maintaining the individual’s ability to generate an income. Again, the individual might only receive a part of this income, with the rest being paid to creditors.
Those seeing bankruptcy as a get-out-of-debt-free card might just want to discuss it with a Laurel Maryland debt relief lawyer prior to beginning proceedings. An experienced bankruptcy lawyer can describe the various options and the various consequences.
Source: ivn.us, “How Long Will a Bankruptcy or Foreclosure Stay on My Credit Report?“, Simon Campbell, May 1, 2014