Bankruptcy and Credit Rating

Q.1. How will declaring bankruptcy affect my credit rating?

It is quite likely that if you are considering bankruptcy your credit rating is already poor. If you declare bankruptcy you will be assigned the lowest possible credit rating score. Once your bankruptcy has been discharged your ability to obtain and use credit will depend upon your ability to convince lenders that you are a good risk.

Q.2. Is there anything I can do to correct this?

No one is required to grant you credit. You will have to start to rebuild your rating. Establishing a budget to ensure that you keep your expenses in line is a good start. Pay all bills on time and avoid unnecessary expenses so that you can put money aside for emergencies. This will help you avoid going into debt to address unforeseen expenses.