How your credit will be effected by filing for bankruptcy depends on your situation prior to filing.  Credit is calculated using five factors: your payment history, the amounts you owe, the length of your credit history, the amount of new credit you have, and the types of credit you use.  The two biggest facts are your payment history and the amounts owed. 
Many people worry about the impact that filing will have on their credit.  Bankruptcy is visible for 7-10 years, however, it is important to note that everything you do is visible for 7-10 years.  Every late payment, or missed payment, is visible for up to 10 years.  If you are making multiple late payments or missing multiple payments every month you might be doing more damage to your credit than you would be by filing for bankruptcy.  Bankruptcy is a one time hit to your credit. 
The biggest factors in your credit score are the payment history, accounting for 35% of your credit score, and the amounts you owe, accounting for about 30% of your credit score.  Filing for bankruptcy will lower the amount that you owe drastically, so this area of your credit will actually improve.  In fact, in some cases, where the credit score is quite damaged, filing for bankruptcy may actually improve your credit score. 
It is also very possible that your score will not improve, or decrease.  The best thing you can do to increase your credit score is make payments on time.  Speak with your attorney about ways to improve credit.  You may want to get a small credit card that you can pay off in full every month.  It is important to remember that while the bankruptcy is visible for 7-10 years, it will not be calculated in your credit score for that long.  More often than not, people are able to purchase vehicles, and even houses, after filing. 
Filing for bankruptcy can eliminate your debt, or at least get it to a manageable level.  Filing for bankruptcy can give you a fresh start and help you take control of your financial situation.  Bankruptcy coupled with informed and responsible decision making can get you on the right step to living a debt free and financially stable from here forward.
If you still have questions, or would like to set up a free consultation with a St. Louis Bankruptcy Attorney, contact us today!