That sounds weird doesn't it? Most people think that filing bankruptcy will totally ruin your credit. In reality, the truth is just the opposite for most people.

When you are seeking help getting out of your financial problems, chances are that your credit is already bad. You're behind on your credit cards and other bills, your house is about to be foreclosed, perhaps your car is about to be repossessed. If any of this describes your situation, your credit score is already low, and filing bankruptcy will not make it worse.

On the other hand, if your credit score is low when you file bankruptcy and you take steps to rebuild your credit as soon as you file, your credit score should be about average a year after you file. Apply for a secured credit card, use it for necessities like groceries, and pay it off every month. You'll soon get offers for regular, unsecured cards. Do the same with them.

The main factor in your credit score is paying your bills on time. There are other factors, such as debt-to-equity and debt-to-credit ratios, but these are not as important as whether you pay those bills when they are due. If you follow this advice, your credit score should be about 650 within a year.

Do not hesitate to file bankruptcy because you are afraid of ruining your credit. As you can see, for most people filling bankruptcy will actually improve your credit eventually. Perhaps even more important, if you are drowning in debt that you cannot pay, your credit is probably the least of your concerns. Failing to take action or even waiting too long can cause far worse problems than lowering your credit score.

If you are unable to pay your bills and/or facing foreclosure or repossession, contact a bankruptcy attorney now for a free consultation. It could be the best financial move you make, and will probably improve your credit!