How Will My Credit Be Affected?

If you are already over your head in debt, your credit is probably already ruined or headed in that direction.  If so, Bankruptcy or Chapter 13 probably will not hurt your credit rating.  In the long run, it may help.  The availability of credit is the most important consideration.

If you already have repossessions, foreclosures, lawsuits, judgments, or bad debts reported on your credit report, or if you are simply over-extended, credit is probably not available to you anyway! In terms of credit, you have nothing to lose! Believe it or not, Bankruptcy or Chapter 13 may be the first step towards re-establishing credit.

If you cannot pay your debts, your credit record will get no better.  By filing Bankruptcy, you get rid of most of your debts.  Or, by filing a Chapter 13, you can get your debts paid off and clear up your financial record.

Furthermore, after filing Bankruptcy or Chapter 13, there are still ways to get a major credit card, buy a new car, or purchase a home.  It depends entirely on whom you are dealing with and your financial circumstances at that time.

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