For many Connecticut residents, the decision to file for bankruptcy comes at a time of significant stress. It is easy to become overly focused on the negative aspects of Chapter 7 bankruptcy, while overlooking the fact that the bankruptcy process is a springboard toward lasting financial stability. A recent article looks at bankruptcy statistics, and notes that millions of Americans will soon have their personal bankruptcies removed from their credit reports.
According to researchers, the year 2010 saw a significant increase in the number of personal bankruptcy filings. Chapter 7 bankruptcy peaked that year, largely due to the housing crisis and economic instability. As we are now approaching the seven year mark on these filings, many consumers will soon see their personal bankruptcy drop off of their credit reports. That can lead to an improvement in credit scores and the ability to move forward with new financial aspirations.
Some individuals will take advantage of their improved score to re-enter the housing market. Others will be able to pursue goals such as upgrading their personal vehicle, starting a new business or sending their kids away to college. No matter what their financial aspirations may be, it is undeniable that having a Chapter 7 bankruptcy drop off of one's credit report is a positive thing.
Connecticut consumers should also be aware that it does not take a full seven years to recover from a credit score drop due to filing for Chapter 7 bankruptcy. Credit repair efforts can begin almost immediately upon the conclusion of the bankruptcy process. Over time, consumers can rebuild their credit standing as they work to regain financial stability. Bankruptcy is a powerful financial tool that can be leveraged to improve the lives of individuals and families, and should be carefully considered when appropriate.
Source: housingwire.com, "Disappearing bankruptcies could start new wave of homebuying", Kelsey Ramirez, May 30, 2017