One of the main reasons why Americans try to avoid filing bankruptcy is because of the fear of destroying their credit. What they don't understand is, their credit is already worthless at the time when filing bankruptcy becomes a necessity. One of the main objects of how the credit reporting agencies develop people's scores is debt ratios. At the time of a bankruptcy filing, most people have all their credit cards completely tapped out, giving them very high debt ratios. So when someone says they want to avoid filing bankruptcy because they don't want to ruin their credit, it really has no merit. I think the credit industry has brainwashed Americans into believing they will never be able to get credit again if they file for bankruptcy. This is a complete lie to those who can't figure it out for themselves. This mistruth is usually perpetuated at the lowest level of the credit industry with the collection departments. When people start getting behind on their bills and start dealing with collections, the debt collector will slip in the comment of how it's important to continue paying even though it's late, to make sure that individual doesn't ruin their credit. In reality, the creditor is reporting every late pay and shows the balance on the card being tapped out. That's what will ruin your credit. Creditors want to keep people in bondage to them knowing that if filing Chapter 7 bankruptcy comes into the picture, they will receive nothing. This is game over for the creditor because they can no longer even contact the debtor.

After making the decision to file bankruptcy and going through the process, the bankruptcy attorney will usually offer support and suggestions for the individual post bankruptcy. Typically, the bankruptcy attorney will usually advise individuals to keep the use of credit at a minimum for as long as they can. The time will come when credit will be available for individuals after filing bankruptcy. Immediately after the bankruptcy discharge, some people have stated that they have gotten courted by creditors offering them credit cards and loans. Creditors are not stupid and know that an individual leaving a bankruptcy filing might be debt free or close to it. They also know that this same person cannot file Chapter 7 bankruptcy for another eight years. As long as they are employed, they seem like a pretty good risk. A bankruptcy attorney will tell you to beware of many of these offers as there are many predatory lenders out there. Some people jump on the offers not realizing the huge fees and higher interest rates. These lenders prey upon individuals fresh out of bankruptcy and tie them up by putting them in debt again. A good bankruptcy attorney will tell the debtor to build their credit slow by getting small credit cards and only keep the small balance to rebuild a payment history. Another loan that is easy to get is an automobile loan. For someone post bankruptcy, as long as the person has a good job, lenders will be willing to take a risk for a little bit larger down payment with the loan being secured by the car. People after bankruptcy should enjoy the time of being debt free while being able to pay their bills as they come in. Credit will come back in its own time probably faster than one would ever know.