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Bankruptcy doesn't necessarily prohibit you from obtaining credit

If you are constantly dealing with overwhelming amounts of debt, you might be suffering a lesser quality of life in the process. Substantial monetary obligations can leave you struggling to keep up with monthly expenses, and if the problem persists, you could be in search of some much-needed financial relief.

While exploring the available outlets for relief, you could be wondering if bankruptcy is a viable option. However, you might have some reservations about a similar decision and wish to know if filing for bankruptcy will inhibit your ability to obtain additional lines of credit in the future.

Obtaining a loan after bankruptcy

If you are unable to keep up with monetary obligations, you may already be experiencing trouble securing a loan. By obtaining relief from debts through bankruptcy, you can begin to rebuild your credit shortly after finalizing the process. While it may seem counterintuitive to pursue a loan after declaring bankruptcy, it might be necessary, and some aspects that may influence the process could include the following:

  • Current income: When applying for a loan after bankruptcy, a creditor will likely consider your current level of income, as it could indicate your ability to make future payments.
  • Current debt load: Creditors may also look at your debts when determining eligibility, and it might be advisable to keep your debt load as low as possible following bankruptcy.
  • Down payment: While obtaining a loan at this stage can prove challenging, it isn't impossible, and if you are able to pay a percentage of the purchase up front, your chances of securing a loan may increase.
  • Payment history: After finalizing a bankruptcy, paying your bills on time is advisable, as maintaining a good payment history could be an essential part of rebuilding your credit.

While showing an ability to be financially responsible may go a long way in helping to secure a loan, your credit score might still play a part. With numerous factors to consider regarding your financial future, it might be advisable to speak with someone who is knowledgeable in such intricate matters for guidance.

Advice on options for relief

The burdens of debt can weigh heavily upon you, potentially adding an unnecessary amount of stress to your everyday life. While you may wish to pursue a life free of overwhelming monetary burdens, the process can be exceedingly complex. By speaking with someone with experience in federal and Ohio state bankruptcy laws, you could obtain advice on each outlet of relief, as well as their potential outcomes, which could prove invaluable to finding the correct path with which to pursue a healthier financial future.

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