So many Americans with insurmountable debt might never consider bankruptcy because they are confident it will annihilate their credit. You may have a more realistic view but are still reluctant because you believe the long trudge back uphill will be long and difficult. Yet, that may not be completely true, either.

1. You can start rebuilding credit immediately

After a law office Edmonds finishes discharging your eligible debts, you are free to start over. There are credit products designed to help you start rebuilding, such as:

• Secured credit cards
• Authorized credit account user
• Credit-builder loans

Lenders probably won’t offer you much credit at the start, and almost surely nothing without collateral. Still, one of the best ways to rebuild credit is to use it responsibly.

2. Chapter 7 filers recover faster than non-filers

The New York Federal Reserve made a revealing comparison of two groups of people with similar debts and credit scores. The first group filed for Chapter 7, and the second group attempted to tough it out. In the year following the discharges, the filers averaged higher FICO scores and more new accounts that were helping them rebuild their credit history.

3. Your FICO score could rebound within months

Statistics from a major credit bureau calculated the average credit score of Chapter 7 filers in 2010 to be around 540. However, after about half a year, the same group’s FICO scores had gone up to a new average of 620. Post-discharge factors like total available credit and the percentage used could help scores instead of hurting them.

A Chapter 7 bankruptcy will park itself on your credit report for 10 years. Banks may choose not to lend to you, and the credit you do get will likely be expensive. However, if you consider the more limited opportunities to spend yourself back into debt, you could use that 10 years to get your FICO score to soar. By the time the bankruptcy record drops from your history, you could have an excellent credit score, a decade of practicing good habits, and a financial strength you never imagined possible.