| A lot of people believe that bankruptcy will negatively | | | | building a new credit history. |
| impact their credit, and to a great extent that is true. | | | | All of this amounts to one thing for the credit issuers. |
| There are credit issuers who won't give credit to | | | | You are more likely to make your payments after |
| people who have a bankruptcy on their credit report. | | | | you've filed bankruptcy than you would have been |
| But bankruptcy can also have a positive effect on | | | | before you filed. |
| your credit situation, too. Some credit issuers actually | | | | Not all creditors feel this way. Prime lenders aren't |
| prefer issuing to someone with a bankruptcy over | | | | going to feel the same way, because they can just |
| someone with a mountain of bad debt, because they | | | | accept those people who have flawless or nearly |
| know that person is trying to clean up their past | | | | spotless credit. But sub-prime lenders certainly may |
| mistakes and also that they can't legally file again right | | | | look at a bankruptcy in a different light than bad credit |
| away. | | | | without a bankruptcy. |
| From the credit issuer's point of view, they know that | | | | I would NOT recommend looking at bankruptcy as a |
| you are probably ready to put your past credit | | | | way of improving your overall credit score, because it |
| mistakes behind you, and that the bankruptcy has now | | | | won't (at least not right away). But you should also |
| cleared off any payments you were making so you | | | | realize that you shouldn't avoid bankruptcy if you really |
| have more disposable income. | | | | need to file it because you think it will ruin your credit. |
| Additionally, people who have just been through a | | | | Honestly, if your situation is bad enough to see |
| bankruptcy are usually looking to rebuild their credit. | | | | bankruptcy as your only option, it can't hurt your credit |
| Now that they've gone through the trauma of a | | | | score much. In fact, it may even be an improvement in |
| bankruptcy, they want to move forward and work on | | | | the eyes of some lenders. |