We all hear the radio commercials. “Don’t file bankruptcy. You’ll ruin your credit score.” I probably don’t have to tell you that advertisements lack a rather large amount of credibility in their claims, but how concerned should you be about your credit if you file for relief? Let’s take a look.

The first thing to consider is not the future, but the present. I often find the “save your credit” arguments a bit humorous. Why? If you are considering filing bankruptcy, it is because your financial situation is a mess and probably a disaster. Given this, isn’t your credit pretty much already shot? If you are missing payments, it doesn’t take much for the old FICO score to imitate a Mexican cliff diver entertaining the tourists!

Don’t get me wrong. Filing bankruptcy will do a number on your credit. That being said, you might be shocked to find out that you will suddenly start getting tons of credit and loan offers. How can this be? Well, you are usually going to be barred from filing for bankruptcy again for another seven to ten years. This makes you a great risk in the eyes of creditors. That being said, you can expect to pay higher rates for the credit.

Let’s assume a worst case scenario. You’ve filed bankruptcy, your credit rating is ruined and nobody will extend you terms. Well, so what. The Great Recession has put tens of millions of people into this position. Lenders make money off their loans. This is why the give them out. Now they face a situation where perhaps a quarter of the population has very low credit scores. Do you think they are going to abandon 25 percent of the market? Of course not. Once the Great Recession has truly ended, you can expect to see all kinds of credit products coming out for people who have low FICO scores.

Is filing bankruptcy the end of the world when it comes to your credit score? Not really.

Thomas Ajava writes for BankruptcyAttorneysandLawyers.com - where you can find an Alabama bankruptcy attorney to get you through the complexities of the bankruptcy court system.