What happens to my credit if I file Bankruptcy?

The fact is that when lenders or other creditors review your credit report they rank bankruptcy as the worst.

However, you can rebuild your credit immediately with a secured loan or credit card. In fact you can even obtain these items while going through the bankruptcy process.

Why would creditors give you a secured loan or credit card if you filed bankruptcy? Because once you have filed bankruptcy, you cannot file again for 8 years. Creditors realize that if you have a job or source of income, and they give you credit after you have filed bankruptcy, you must repay the debt or they can garnish your wages and/or place liens against your property. Since you can't file bankruptcy there is no way you can stop the garnishments or liens. In this way, you are a better credit risk than someone who has never filed bankruptcy.