If you are considering filing for chapter 7 or chapter 13 bankruptcy you are probably trying to weigh the benefits verses the drawbacks. The one major aspect that many are most fearful of is how it will impact your credit score. What I would urge you to look at is the how much money you are going save. Moreover how much cash flow is it going free up? If you are among those that will benefit by a bit of extra cash you need to ask yourself if credit is really going to be something you need as much as you think?

In America of course we are taught from day one to develop our credit and how to get ourselves into debt. Yes it’s true that nearly everyone who files for bankruptcy compromises their credit. However in a worst case scenario its only affected for seven to ten years.  Many people find themselves able to finance a house much sooner. It’s not uncommon to see a couple purchasing a house in 2-3 years depending on a person’s income and down payment.

You may feel you need to hang on to one of your credit cards. Sometimes this makes sense for some people and they want to know if it’s possible? The answer is yes and it’s known as reaffirming the balance. Yes by law you must declare the debt when you file bankruptcy however if you feel the benefit of having the card is worth the continuing charges you can certainly keep the card by reaffirming.

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