Contrary to popular belief, bankruptcy can have a positive impact on most people’s credit scores. To begin, let me provide you with a Three Year Credit Score Comparison Chart:
|Debt Negotiation:||good||bad||terrible||terrible||so so / good|
|Debt Consolidation:||good||bad||bad||bad||so so|
|Doing Nothing:||good||so so||terrible||terrible||terrible|
|Repaying on and off:||so so||so so||so so||so so||so so|
You can see that after filing for bankruptcy, your credit will realistically improve far faster than if you try to maintain debt service payments and miss some. Keep in mind that the comparison here is your current credit score compared to your post-bankruptcy credit score.