Go Bankrupt?

Written by
The Credit People
Go Bankrupt

Despite over 1.5 million people filing last year, bankruptcy should be considered only as a last resort. The damages of bankruptcy to your credit reports are like a snow ball effect. After you file bankruptcy, every account on your credit report that you included in your bankruptcy turns into a negative item as indicated by “included in bankruptcy”. But it doesn’t stop there. In addition, you also get two more negative items over time added on your credit; the actual bankruptcy mark, and the bankruptcy discharge. These two items are separate from all the other items that are now negatively listed on your credit report as “included in bankruptcy”.

The time investment (the forgotten by-product of filing bankruptcy)

In addition to the many phone calls and letters that you will undergo back and forth with third-parties throughout the process, you’ll also have to gather your documentation as well. It’s not just a simple court appearance and you’re done. There will be many hours invested, hours that might be better served somewhere else depending on your situation.

Every state is different as well, so there will be a learning curve. You will most likely need to take time to complete a petition which starts your bankruptcy. You’ll need a document with a list of your creditors, a document detailing your financials, and you’ll need to explain how you plan to move forward—after your bankruptcy is complete.

When trying to open new credit post bankruptcy, you’ll have to explain why you previously filed, and why you should get considered for “new” credit now in the first place. This will be annoying and completely unpredictable at times, which is exactly why many people seek out our services after their bankruptcy.

Getting Credit After Bankruptcy

Because bankruptcy devastates your credit and score, this severely hinders your ability to get new credit. Your score can drop by over 100 points. You can encounter lenders that will not work with individuals who have filed bankruptcy within a specified timeframe. Credit repair is usually the only option for people in this position.

Employment After Bankruptcy

Employers have the right to run a credit check on you if you apply for a new job. A bankruptcy on your credit can be the single defining difference between you and another applicant, and guess who they will most likely choose? For example, let’s say you and another person are applying for the same job. You both have the same experience with the same background and qualifications, however, there is a bankruptcy on your credit and there isn’t one on the other applicants. Think about it. If you are an employer you might jump to conclusions and assume the person without the bankruptcy is more “responsible” and therefore is the better choice of the two applicants. If you’re in this position now, talk to The Credit People after getting started. We’ve helped many of our clients where a credit check is involved in employment or promotion.

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There’s no catch, risk, or obligation…If you’re interested and want to learn more, just fill out the form and let’s help you repair your credit!


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"Thank you for the advice. I am very happy with the work you are doing. The credit people have really done an amazing job for me and my wife. I can't thank you enough for taking a special interest in our case like you have. I have received help from at least a half a dozen people over there and everyone has been so nice and helpful. You're a great company."

GUSS K. New Jersey

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