Bankruptcy Ruins Your Credit - Yeah, Right.

"Bankruptcy ruins your credit." I've heard this a thousand times and its just silly.

Does anybody think before they say this?

Show me 1 person who files bankruptcy with "good credit" and I'll show 99 others who file with credit reports you wouldn't use to house train your puppy.

The truth of the matter is bankruptcy usually helps clear up the credit of most people by

1. reorganizing their debt into something more manageable, or
2. wiping out their debt and completely transforming their debt to income ratio

Bankruptcy is not a perfect solution by any means and nobody is ever proud to file. But the next time you hear somebody say "Bankruptcy ruins your credit." challenge them on it.


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