One thing that I've heard from many different people is a concern on whether or not filing Bankruptcy would ruin their credit. There's not a real easy answer for that.
Obviously, a Bankruptcy filing will appear on your credit report and creditor's may decline to extend you credit for anything for a period of time. But, the reality for most people is that by the time you get to the point where Bankruptcy becomes one of the few options available to you, your credit score is likely pretty bad off. If you are at the point of filing a Bankruptcy case, your credit report will likely show late payments, charge offs, judgments, collection agency referrals, etc.
First and foremost, fear of what Bankruptcy will or won't do to a credit score should have very little to no impact on your decision to file Bankruptcy. You should never look at your ability to get credit or your credit score as anything more than a tool businesses use in deciding whether or not to lend you money or how much to charge you for loans. Your credit report is not a measure of your worth of a human being, but rather sets forth a number that businesses use to make decisions.
Filing a Bankruptcy case (either Chapter 7 or Chapter 13) is more based on whether or not you can truly afford your debts. Many people file Bankruptcy everyday for a variety of reasons. The reality is that most of the people that file had simple just came upon bad situations where they could no longer afford their debt because of a job loss, divorce, or unexpected medical issues. These are things that can happen to any of us, and that is what Chapter 7 and Chapter 13 Bankruptcy is there for.
As for your credit score, little by little you'll rebuild it after you've received your Bankruptcy discharge and usually to the point where it is a lot better than it has been in some time.
