A bankruptcy filing will show up on your credit score for 10 years . In fact, damage to credit and a perceived inability to access it post-filing is one of the biggest reasons people shy away from filing for bankruptcy. Give it some thought and this might be prove to be a mistake, especially if you are experiencing widespread defaults on a host of bills. You see, often a potential bankruptcy candidate’s credit has already been damaged by an inability to pay their debts as they come due. Perhaps a few mortgage payments have been missed or a credit card account has been closed due to non-payment or is being reported as 90 days past due. Even a delinquency on a utility bill or an old speeding ticket that has been sent to collections can have a negative impact on your credit. Fact is that people who are struggling financially often have poor credit and there isn’t much more that a bankruptcy can do to bring down their score. Once damage to credit is taken off the table, what reason do you have not to file? If you are facing a mountain of debt the reasons start to diminish quickly.

Believe it or not, there is quite a bit a bankruptcy can do to help people start to improve their credit. How? Well for starters, one factor in any credit score is an individual’s debt to income ratio. If you are earning far less than you owe to your existing creditors, it is a sign that you don’t have the ability to take on new debt…….you are therefore not creditworthy. Bankruptcy eliminates or discharges most old debts leaving your balance sheet with alot less red on it. The bankruptcy discharge can properly be viewed as a foundation upon which to build a new financial future. Keep this in mind, if you are already late on your bills, your credit is suffering regardless of whether you file bankruptcy. Staying out of bankruptcy Court to “salvage ” an already bloodied credit report doesn’t make much sense. If you’re stuck with a hit on your credit score you might as well get out from under the debt that is putting pressure on you and your family at the same time.

If you are considering bankruptcy contact an attorney.