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Pirate15

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What exactly does bankruptcy do for your credit score and financial situation?

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When you are in a position that you need to file bankruptcy, the bankrupty itself probably won't be felt so much on the score as most of the damage had already been done.  You would routinely have multiple accounts that are past due, some in collections.  Each of these caused large drops to your score already.  Each of these late payments and collections will remain on your credit score for 7 years from the date it was reported late or deliquent.  

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The hard fact is bankruptcy tanks your credit score for ten years and you have to rebuild from the ground up.  It can relieve you from the obligation to pay some debts, but there aresome things (child support, federally subsidized student loans, taxes) that are not dischargable in bankruptcy. A bankruptcy attorney can give you the full details.  Look for one that offers a free initial consultation and listen very carefully to what you are told. Doing some repayment plan iis far better and less damaging.

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