Bankruptcy is an inherently complicated and heavy process for the person filing. It is scary and intimidating too, because the perception of bankruptcy is that once you file it, your credit will be ruined forever and your life will never be the same ever again. It is this stigma that we are trying to fight. Bankruptcy doesn't have to be this "world destroyer" that it is made out to be. To the contrary, bankruptcy can actually help you rebuild your credit score.
"How is that?," you might ask. Well, consider the following. Someone who is in debt and continues to pile up this debt will likely continue to see his or her credit score deteriorate. It is a cycle that obviously can't continue. So, filing for bankruptcy will help the individual clear out some, if not all, of his or her debts and get them on the path sooner to fixing their credit score.
While there may be an initial hit to your credit, the long term benefits of filing for bankruptcy outweigh the short term impact. If you have a steady source of income and you demonstrate timely payments with your financial commitments after a bankruptcy, you will steadily see your credit score improve, even with a bankruptcy in the past.
You shouldn't think that filing for bankruptcy is "the end." Your credit score won't take a permanent hit that you can never recover from. Bankruptcy is a legal process that puts the filer on a route towards fixing their financial life and rebuilding their credit score.