Rebuilding Credit After a Bankruptcy 

Many potential clients falsely believe that their credit will be ruined if they file bankruptcy. The truth is that many debtors can actually benefit from filing bankruptcy. Most debtors' credit scores are reduced by creditors for non-payments or late payments of their bills.  In addition, the large amounts of debt that debtors often carry depresses their credit scores.

Once a client files for bankruptcy they are free from their unsecured debt (e.g., credit cards and medical bills) and can not discharge their debt in a Chapter 7 for another 8 years. Therefore, clients that have recently filed bankruptcy are better credit risks going forward, because they have almost no other debts and cannot discharge future debts for 8 years.