There is no simple answer to this question. In some cases, your credit is already damaged from being behind on debts and bills. When you file for bankruptcy, the pause on collections from creditors may allow you to become in good standing with creditors. Chapter 7 bankruptcy eliminates your debts and Chapter 13 allows you to repay some debts while potentially discharging others. Both of these options can help rebuild your credit. However, bankruptcy does appear on your credit report for 10 years. In many cases, bankruptcy will not make your credit any worse. In fact, in some cases bankruptcy actually improves your credit score. As a general rule of thumb, the higher your credit score when you file bankruptcy, the more it will fall. The lower it is when you file, the less it will fall.

Arizona state bankruptcy laws require all bankruptcy filers to take a credit counseling course within 6 months prior to filing to be eligible to file for bankruptcy, which is available online. In this course, you can learn more about rebuilding your credit score and budgeting for a healthy financial future.