There is no clear answer to this question. If you are already behind on your bills, your credit score may already be bad. Bankruptcy will probably not make things any worse. Your bankruptcy will stay on your credit record for ten years from the date your bankruptcy petition was filed. If you file bankruptcy, however, you are probably in a better position to pay your current bills and you may be able to get new credit as soon as the first year after you file.
If you decide to file bankruptcy, remember that debts eliminated in your bankruptcy should be listed on your credit report as having a zero balance, meaning you do not owe anything on the debt. Debts which are incorrectly reported as having a balance will negatively affect your credit score and make it more difficult to get new credit.
You should check your credit report after your bankruptcy and file a dispute with credit reporting agencies if the information is not correct.
To learn more about whether or not Chapter 7 bankruptcy or Chapter 13 bankruptcy is your best option, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Our online scheduling system allows you to schedule bankruptcy consultation at a time that is convenient for you.