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Using loans to rebuild credit after bankruptcy

Filing for bankruptcy is sometimes the best solution for a South Carolina resident who is experiencing a financial crisis. If a person loses their job and cannot keep up with their mortgage or car payments, filing for bankruptcy can protect vital assets from seizure by creditors. The downside of filing for bankruptcy is that it can have a negative impact on a person's credit score for several years.

The best way to rebuild credit after going through the bankruptcy process is to take out loans and pay them back on time. Doing this will send positive information to the credit bureaus and start the process of recovering a good borrowing reputation. Though qualifying for a loan after bankruptcy can be more challenging, there are many lending institutions that offer secured loans for people with bad credit.

A secured loan is a loan that is backed by physical property such as a car or a home. If a borrower fails to make payments on a secured loan, the lender can seize the asset that was put up as collateral. Because secured loans are backed by real property, they are much less risky for lenders than unsecured loans. A person who has recently filed for bankruptcy may be able to obtain an unsecured loan if they have a creditworthy cosigner.

Filing for personal bankruptcy can end creditor harassment, protect a home from foreclosure and stop utility companies from shutting off a person's electricity. An attorney might be able to help a person who is overwhelmed by their debt to decide whether seeking bankruptcy protection is the best option. If a person decides to file for Chapter 7 bankruptcy, an attorney may be able to help the person to maximize deductions so that they can protect property from liquidation.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
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Charleston Office