There is no doubt – your credit score will go down as a result of a bankruptcy filing, but a credit score is only one component lenders use in determining your credit worthiness.

Remember, lenders will also look at your income and your debt burden. If you have missed payments, have accounts in collections, have judgments, or repossessions on your record, chances are your credit score is already very low.

Bankruptcy may lower the score a bit more, but bankruptcy can also eliminate your debt burden completely, which will eventually help your credit to repair itself. At the very least it will stop the hemorrhaging and in a lender’s eyes, this can make you more credit worthy since your income is free from the burden of your old debt payments. Moreover, once you make a fresh start, you will be able to rebuild your credit over time.