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California personal bankruptcy can lead to with credit rebuilding

Financial difficulties can hit a person in California when they least expect it. Sometimes, high levels of debt emerge when a person becomes ill or loses a job because of the recession. Other times, it is when a home is owing to an adjustable rate mortgage with an abnormally high interest rate. Regardless of the reasons, for those people with high debt, the decision to file for a personal bankruptcy is usually a good one that can offer immediate financial relief.

The good news for those same people in California is that they can begin to rebuild their credit as soon as they complete a bankruptcy. This is because they can take steps to show credit rating agencies that they can handle new debts as they go forward. Such efforts may be small at first, but often lead to the ability to obtain new credit and lower interest rates, even a short time after a bankruptcy filing.

Some of the steps recommended to people after a bankruptcy are opening a bank account or a secured a credit card. These can show good financial management. In addition, some may find it good news to learn that a new home loan can sometimes be obtained only 24 months after a bankruptcy discharge occurs.

Filing for bankruptcy is often the best outcome for those who find that they are unable to repay the debts that they have accumulated. The financial relief offered is only one aspect of the process. By responsibly dealing with financial issues that have spiraled out of control, a foundation can be laid for reestablishing good credit and returning to financial prosperity once again.

Source:, "Starting over after bankruptcy," Mark Huffman, May 17, 2013

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