In most cases getting good credit again is one of the best reasons to file bankruptcy. If your inability to pay your debts has punished your credit score there is no better or faster way to rehabilitate and raise your credit score than filing bankruptcy.
I know that seems counterintuitive. Why would that raise your credit score? Shouldn’t you be punished more for filing bankruptcy?
Yet most people’s credit score improves dramatically one year after filing bankruptcy. The reason is that the main cause of the bad credit is too much debt. You’ve eliminated that by filing bankruptcy.
Now that your income is all yours and no other creditors have a claim to it, and you cannot file Chapter 7 bankruptcy for another 8 years, the credit rating agencies know you’re the perfect opportunity for their creditor customers, which are who the credit reporting agencies are working for. They are not working for you, they are working for the benefit of the lenders.
So don’t believe the myths about how your credit is ruined forever by filing a bankruptcy. Get the facts as to how the credit rating system works so you can have it work for you, and not against you.
