Determining Which Is Worse: Bad Credit or Bankruptcy

When you are trying to make decisions concerning bankruptcy, you have to consider all of the angles. Your credit is never just about today—it is always about future opportunities and restrictions as well. Obviously, you want to aim for more opportunities and fewer restrictions. To do so, it is a good idea to compare the effects of bad credit to the effects of bankruptcy.

Afterward, you can weigh your own situation against these facts to decide which route is best for you and your household. As always, it pays to seek the advice of qualified bankruptcy and debt management lawyers in order to make the best decision possible. However, this is a good place to start. You can read more about bankruptcy and bad credit here (

Timeline of Bankruptcy and Bad Credit

One way to decide between bankruptcy and dealing with bad credit is to compare timelines. As it stands now, bankruptcy will be on your credit report for ten years after it is discharged. How long will your bad credit and unpaid accounts be on your credit report and affecting your finances? After bankruptcy, you can start rebuilding your credit right away, even with the bankruptcy on your report.

However, with bad credit, you can’t usually get more credit to build on, so all you have to work with are old debts. Take a look at your financial status right now. When all things are considered, including interest rates over the next ten years on existing loans and an increase in the cost of living, is it realistic to think that you can improve your bad credit over the next few years and still live a decent life? If not, bankruptcy could be the best answer for you. Consider the details below when you make your choice:

  • You have more freedom to rebuild a positive credit score after you file bankruptcy because you don’t have all of the old accounts to continue to struggle to manage.
  • Career opportunities and existing jobs may change for the worse in the future, depending on the field you work in. This will affect your ability to manage debts as well.
  • There is ongoing stress associated with dealing with old debts that may seem like they never go away.

For more information on Chapter 7 bankruptcy, click here (

Plot Things Out

If need be, outline your financial plan step by step over the next few years. Take a look at which scenario allows you to build your credit fastest with the least amount of strain on your budget. If you are drowning in debt that seems to be out of control, you should consider bankruptcy.

For answers to debt management and bankruptcy questions, you can call 1-800-DEBT-RELIEF (1-800-332-8735) to begin exploring your options.

Please share this post online if you know someone who is trying to decide between managing debt alone and filing bankruptcy.

Related Links:

Florida Bankruptcy Attorneys

Tampa Florida Chapter 13 Bankruptcy

Florida Chapter 7 Bankruptcy Lawyer

Request a Callback

Would you like to speak to one of our attorneys over the phone fo a FREE Consultation? Just submit your details and we’ll be in touch shortly.

I would like to discuss:

Free Confidential Consultation · Affordable Payment Plans · Over 35,000 Clients Have Trusted Our Attorneys · Over 30 Years Combined Experience