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Will Bankruptcy Ruin My Credit? Find Out The Real Truth

Very often when we find ourselves faced with financial difficulty, we may have to ask ourselves: will bankruptcy ruin my credit? The reality of it is that most often, our credit has already been damaged from non-payment of numerous bills or overextending our credit.

Most people don’t realize that bankruptcy, in the long run, will actually improve their financial situation. To understand this process you first need to understand how creditors view your credit report. There are two aspects of your credit report that most creditors will evaluate once they see you have filed for bankruptcy. One is the amount of time which has passed since you filed. The second is the amount of debt you discharged when you filed.

There are a couple of concerns when filing for bankruptcy. If you recently filed and have not completed the process, there is no way creditors will approve any further credit. Also, if creditors believe you filed in order to get away with not paying your accumulated debt (and not because you TRULY needed to file), they will most likely deny your request for more credit.

Once your bankruptcy is approved and discharged (or closed), most credit agencies will give you a chance to start rebuilding your credit again. In fact, once your bankruptcy has closed, your credit rating actually goes up almost 100 points, which in many cases turns out to be higher than when you first filed. So, to answer the question if bankruptcy will ruin your credit, the answer for most of us is “No”.


I would like you all to realize that many of us have, at one time or another, looked at the huge stack of unpaid bills on our desks and thought “there is no way to catch up”. Well, then a job lay off hits one of our family members or a huge medical bill hits the table and we realize it’s time to start over again.

Although many families feel too proud to go through the bankruptcy process, many times this will be the only answer to get your family out from under the burden of financial difficulty. Believe me, I would much rather swallow my pride and get the help needed to rescue my family from this situation than sit home and get calls all day from creditors and bill collectors.

To truly understand whether or not bankruptcy will ruin your credit, there are a few factors you will have to understand before filing. I would advise you to reach out to a professional experienced in filing bankruptcy to gain the knowledge you will need to file successfully. Depending on the amount you will need to file for and whether you will be filing for chapter 7 or chapter 13, will need to be decided before you prepare your documents for filing. The most efficient way to learn what to do is to search online for a service that will offer you a free consultation in order to assist you in accomplishing your goal.

How You Can Get Bankruptcy Help With a Free Consultation
Talk to someone qualified and experienced to help you navigate through the process. CLICK HERE and simply fill out the contact form for a free bankruptcy evaluation. They are my #1 recommendation and since the consultation is free, you have nothing to lose.

The road to financial freedom and recovery is closer to you than you think.


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