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Ok, everyone can look down there noses at me now. I did due to medical issues 3-4 eyars ago. The 7 years bad luck is just not true. IF you know what to do. File Ch 7 if your income still supports the house payment and the car payment and you keep making payments, you get to keep them. Everything else is discharged(at the trustee's discretion) It is rare that a discharge is not granted - usually when it is obvious that the individual can pay the bills, but are choosing not to. 2 weeks after filing BK - open your mailbox to find your first guaranteed credit card from capital one or another high rate card. pay your annual fees, in 6 months you will have 4 CC's. probably 2 Cap 1's, 1 Cross Country, 1 First Premier. Max them out 1 time and immediately pay them off. Use each one every month, even if it is just for gas and pay it in full every month. They will raise your limits. When the first one gets to a $1000 limit and their are $0 balances go to a local credit union or USAA or something similar and ask for a small secured credit line. now you have established credit with a more reputable lender. do this and within 2 years you will have a greater than 700 FICO and can generally qualify for decent terms in most things. the theory is that since a person BK'd once they have learned their lesson and cannot file again for 6 years even if they wanted.
BK has a stigma but is far less damaging to credit than any Consumer Credit Counseling Service. I personally filed BK, and I am a manager for a finance company.
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