One of the biggest hurdles for many people to overcome when they are considering filing for bankruptcy is the thought that their credit score will be hurt. While this might be true in the short term, the long-term effect is often much more positive.

If you are thinking about filing for bankruptcy in Georgia, it is likely that your credit score is already suffering due to high balances and late payments on credit cards or other bills. It may be hard to break out of the debt spiral without taking some kind of action — action such as a Chapter 7 or Chapter 13 bankruptcy filing.

A bankruptcy filing will stay on your credit report for a considerable amount of time: Chapter 13 for seven years, and Chapter 7 for 10 years. However, the further away you get from your bankruptcy, the less impact it will have on your credit. In fact, there are multiple factors that influence your credit score that you have more control over. These include, among others:

• The age of your credit accounts
• Your debt-to-asset ratio
• Monitoring your credit report to have errors and misinformation removed
• Maintaining “good debt,” or accounts on which you are in good standing

It only takes a few bad choices to end up with a poor credit score, but rebuilding your credit takes time and knowledge. A good place to find out more about how to ease your debt burden and work toward a fresh financial start is by speaking with an experienced South Metro bankruptcy attorney.