To file for bankruptcy does not mean that you can never rebuild your credit. For those who struggle with debt in Louisiana, bankruptcy is sometimes the best option. According to Credit Karma, bankruptcy stays on your credit report for 10 years, however this does not mean it will negatively affect you for 10 years. Bankruptcy is not a permanent black mark on your credit score.

Chapter 7 and Chapter 13 bankruptcies are among the most common. The differences are that Chapter 13 involves a repayment plan, whereas Chapter 7 involves discharging the debts entirely. Future creditors and lenders may look more favorably at those who paid back some of the debt through a Chapter 13 bankruptcy. Despite this fact, you can still rebuild your credit.

To help increase your credit score, be diligent and ensure that all of the right accounts say discharged on your credit report. If you find any errors, you can dispute the errors. After a short while, you will be able to apply for credit cards again. You can use a secured credit card to help rebuild your credit. When you use a credit card for your credit score, it is crucial that you can pay your card in full each time that you use it. If you keep the card utilization rates low, your credit score will improve. In as short as five years, many people see a boost in their credit score.

The above information is meant to inform on bankruptcy’s affect on your credit score. It is not intended to be legal advice.