My credit score and bankruptcy

One of the first things that many potential clients ask me is about the effect of filing bankruptcy on their credit score. Typically, a person who has a boatload of debt has a crappy credit score to go along with it. My response to them is usually a question: “What is better, a crappy credit score and a mountain of debt, or just a crappy credit score?” (Choose the latter). Yes, filing bankruptcy will have a negative effect on your credit score, but it will recover. Pay your mortgage, pay your car loans. Let some time pass before you look again. More on this subject to come…