Filing bankruptcy is a financial last resort – an option that should be decided upon only when there are no other options left for debt relief. Not surprisingly then, the impact that filing has on one’s credit report and score can be dramatic, and filers must work slowly but surely to regain their financial footholds.
Despite some of the negative consequences of bankruptcy, however, life after bankruptcy can be viewed as a brand new financial beginning. The first thing to do to re-start your finances is to realize exactly how your credit has been affected by your decision to file.
Bankruptcy Aftermath
Filing bankruptcy is, essentially, a legal declaration that you are unable to pay your debts. Debts may be discharged via chapter 7 filing, or may be reorganized into a realistic payment plan along with some discharges via chapter 13 filing. In any case, taking such action makes you a very “risky” consumer to whom creditors may lend, and this risk will be reflected on your credit reports.
Not surprisingly then, it is much more difficult for individuals who have filed bankruptcy to obtain credit than those who have not. On the other hand, however, filers with many unpaid debts probably found it difficult to obtain credit before filing too, and some creditors may view filing as more responsible than leaving debts unpaid.
In any case, it is very possible to recover financially from bankruptcy, and it may not be as difficult as you think
https://www.debthelp.com/kc/163-new-beginning-after-bankruptcy-part.html
