Will Bankruptcy Permanently Ruin My Credit?

Are you inundated with mounting debt?  Are you struggling to find ways to repay your creditors? 

If you are one of the millions of Americans with mounting unpaid debt, bankruptcy may be a viable option for you.  While millions of people have taken advantage of U.S bankruptcy laws, many people struggling with insurmountable debt are holding back, afraid a bankruptcy filing will permanently destroy their credit and financial future.

If you are considering filing for bankruptcy, but are worried how the filing will affect your future, you may be surprised to learn to that a bankruptcy will not stay on your credit history forever, and that you'll soon be able to start rebuilding your credit.

In general, a bankruptcy filing will remain on your credit history for 10 years.  But despite having a bankruptcy on your creditor report, you can start re-earning credit shortly after your bankruptcy petition is processed.  Although you may experience a higher interest rate and smaller credits limits, you will nonetheless still be able to obtain credit.

While rebuilding your credit it is important to keep several things in mind to ensure your debt doesn't spiral back out of control:

1. Don't spend more money than you can afford to pay off

2. Make each of your payments on time and in full

3. Don't open more lines of credit than you can reasonably manage to pay off

5. Keep track of how much you are spending each month, and where your money is going.  This will help you look for areas where you can cut back on spending.

6. Try to save more money.  By having some money in a savings account, you will be prepared in the event of an unexpected emergency, sudden job loss, sudden illness, etc.

For more information about how to recover from a bankruptcy filing, please click here to find a bankruptcy attorney near you.