Help! I don't want to file bankrutpcy.

I often hear from clients that they don’t want to file bankruptcy, because of the affect it will have on their credit score. It usually goes something like this, “I have had a 720 credit score! Is there any way to avoid bankruptcy?” Why yes there is…don’t get into debt and if you have, pay your bills on time. However, they are not sitting across from me because they have the ability to pay all of their bills on time. They may be paying some of their bills, usually some favorite credit card at the store at which they enjoy shopping. (“I get 10% off every purchase didn’t you know.”) Or paying just enough each month to keep the bank from sending a tow truck for one or both of the cars they enjoy driving. (“What do you mean $1,200 per month is car payments seems excessive? Have you ever been in that car?”) If they have thought about it at all they may be current on their mortgage and allowed the rest to slide. This is smart thinking if you need to do it. You can’t live under a credit card, not enough protection from the rain. But all too often they are also behind on the mortgage. The bad news is your credit score has already been affected by your missed mortgage payments, and bankruptcy is going to lower it even more. The good news is your credit score doesn't need to stay down for long. After receiving a discharge through bankruptcy the fresh start, will allow you to begin almost immediately to rebuild your credit. In fact you will get all sorts of mail saying “Bankruptcy, no problem!” The key to the recovery is steady income and keeping your nose clean for a little while. Since you won’t need to worry about those bills you could only service here or there before bankruptcy you can be sure to pay all of your post-bankruptcy bills on time. This is a huge step to getting your credit score to rise. Although you won't be able to turn around and buy a house, car or any other major purchase right away without paying high interest rate. (Imagine buying a car with one of those credit cards you just got rid of!) You will be astounded how quickly you can put bankruptcy behind you and rebuild your credit. Given we just went through the worst economic downturn since the Great Depression; bankruptcy does not have the stigma it once did. If you can keep your accounts current from now on, creditors will see you as you are -- a fighter, who making the best of their finances and proving to be a lower credit risk in the future.