If you are facing financial hardship, you may consider declaring yourself bankrupt. While this process may be an effective way to stop collection activities and get a fresh start, it's essential to remember that the procedure is complex. You have to ensure you file the right type of bankruptcy and follow the required steps to succeed.
Doing all these tasks on your own may be difficult, mainly because you aren't a bankruptcy law expert.
One of the main reasons many struggling borrowers put off or discount the idea of bankruptcy is that it will damage their credit score. And while this is certainly true on some level, the damage may not be as bad as you think it will be. Why? Here are five of the most important reasons bankruptcy is unlikely to ruin your credit score.
1. Your Score May Already Be Bad