Business owners in Tennessee with bankruptcies on their records still could have opportunities to obtain new loans. People who have rebuilt their credit scores might secure financing from some institutions. Lenders also give less weight to bankruptcies that occurred years ago.
People can take action to improve their credit scores after a bankruptcy. Tools such as secured credit cards and credit building loans give entrepreneurs a chance to establish new credit records. Additionally, some lenders could grant loans to people with credit scores between 640 and 680. Some might even give someone with a score in the 500s a chance.
For the most part, a bankruptcy needs to be discharged. Lenders will very likely decline to work with someone in the midst of a bankruptcy filing because the court is actively making decisions about a person’s debts and assets. Once a bankruptcy is complete, however, the passage of time could eventually erase it from a credit report. Chapter 7 bankruptcies can persist on personal credit reports for as long as 10 years. Even before they slip away from credit histories, older bankruptcies might not trouble lenders as long as people have shown improvement with their current credit patterns.
Someone who is falling behind on debt payments might need to give careful thought to current needs and long-term consequences before filing for bankruptcy. The advice of an attorney could guide a person through this decision. An attorney could explain how a bankruptcy could provide debt relief and stop creditor harassment. After analyzing a person’s income and debts, an attorney could determine which chapter the client is eligible for.