Chapter 7 Bankruptcy May Not Destroy Your Credit

One of the most common misconceptions about filing bankruptcy is that it will destroy your credit.  We don't generally find this to be the complete truth.  Generally an individual's credit is already in the basement when they decide to file Chapter 7.  Often their credit cards are maxed and no companies will extend them credit.  Filing a Chapter 7 bankruptcy can often make you more attractive to companies, albeit subprime credit.  In numerous cases, individual's credit scores are higher one year after filing bankruptcy than they were on the day of filing.