Credit Rating

For many people, the ability to obtain credit actually improves after filing bankruptcy. The Bankruptcy Code allows credit agencies to report bankruptcies for 10 years instead of the 7 years that most debts are reported. But bankruptcy erases most debts, and that fact can be very attractive to potential lenders.

Discharging your debts in bankruptcy will harm your credit score, but bankruptcy will leave you solvent and debt-free — and able to start rebuilding good credit sooner.