Bankruptcy continues to be a necessary financial option for many consumers. With the unemployment rate lingering near 9 percent, a number of individuals don't have access to the funds they require to pay off their mortgages, credit card debt or auto loans.
As a result, some are left with few options other than filing for bankruptcy. In some instances, FICO says a bankruptcy may cause a credit score to fall by about 200 points.
But this financial setback doesn't have to be the end of the road for these consumers.
Individuals who want to get their credit back in order should obtain a copy of their credit report and credit score to assess their financial standing. Learning their credit score will give them a baseline from where they can start over to rebuild their creditworthiness.
When reviewing their credit documents, consumers may benefit by checking for any inaccuracies or unfair items. Some consumers may be plagued by a mistaken item relayed by a creditor or debt collections agency, which if rectified, could help improve a consumer's credit status.
A credit repair attorney may be able to assist in this process, as he or she may have the experience required to investigate and dispute the item efficiently and effectively. Working to resolve these questionable items may be the encouragement consumers need to get the rest of their credit back on track.