There is Life After Bankruptcy
So you are considering filing bankruptcy but are afraid you’re going to be blacklisted forever. Let me assure you, filing bankruptcy is not as horrible as you might have heard, and in fact, can actually put you in a better position credit wise than you currently are in, especially if your credit score is already poor.
If you have not paid your bills in a long time and/or have been turned over to collection agencies, that will be negatively noted on your credit report and will stay on there for up to 7 years. Furthermore, most types of debts are collectible by the creditor for as long as 10-15 years after the debt was incurred.
By filing bankruptcy, you can wipe the slate clean and start fresh. Although the bankruptcy filing itself will remain on your report for up to 10 years, all of the other negative information, including the unpaid balances, will be wiped away once you receive your bankruptcy discharge. In fact, many creditors would much rather make new loans to individuals who been discharged in bankruptcy than those who have numerous unpaid debts on their credit report.
So think of bankruptcy as not an end of your financial life but a new beginning.
In Part II, we will discuss specific steps that you can take to improve your credit after bankruptcy.