Everyone knows that bankruptcy is an option when your debt is spiraling out of control. Most people know that it gets rid of most of your debt and you get a fresh start, but it is not all good. Claiming bankruptcy has a negative effect on your credit score, and it can severely hamper your ability to borrow money in the future. It can cause you to de denied for loans, or even warrant a hyper inflated interest rate.
If you find yourself with an uncontrollable amount of debt on your hands with no real way out, you still have to fight your hardest to avoid bankruptcy. Sure, it seems like an easy solution, but you will end up regretting it and your life will change forever. Even though your credit score will eventually return to normal if you are responsible with your money, it still takes a lot of time and caused a lot of stress on all parties involved.
So, in reality, claiming bankruptcy does not damage your credit score forever, but it will for a pretty long period of time and it is a stressful situation that no one wants to go through. The best piece of advice? Do all you can to avoid declaring bankruptcy. Keep an eye on your debt and get rid of problems before they become uncontrollable. When you declare bankruptcy, you lose a large part of your life, and you can never get that back.