One of the biggest questions that people ask when they are going through the bankruptcy process is whether doing so is going to ruin their credit. While it is true that it can stay on your record for up to ten years, it’s important to look a bit deeper to see how it really will affect you.
If you are already behind on your bills and payments, your credit is already suffering! The further behind you are the worse it is likely to become. The credit is going to worsen until you take some type of action to remedy it. Often, this means filing bankruptcy. When you do so, you will have your late payments, large balances, and unpaid debts wiped from the record. This means that in most cases having those removed from your record, even though you are going through bankruptcy is a better option.
Once you finish filing your bankruptcy, it is going to take a hit, but you will be able to start repairing it before too long. You will be able to receive a new credit card in some instances. However, it is likely going to have a low limit and a high interest rate. Still, using that card on occasion and paying off the debt immediately is going to be a good way for you to start rebuilding that credit. You just have to make sure that you stick to the payment schedule and that you are never late with your payments to the credit card company.