Of course, you must be prepared to explain why it is necessary to file if a prospective creditor should inquire. With the right strategy, you can build good credit once again. Our office provides a booklet free of charge to each client explaining how to re-establish credit after bankruptcy. If only one spouse files then the other may be able to maintain a good credit standing. Also, if there is a bank card or line of credit with a zero balance before filing, you may be able to use the card after filing, provided it is not revoked by the creditor.
Bankruptcy is intended to be a last alternative.
Consolidation doesn't help, however, if the source of the problem is too little income for too much debt. The Consumer Credit Counseling Service in your area can also be considered. For a nominal fee, they will attempt to formulate a repayment schedule with your creditors. Some creditors will forego further accrual of interest charges as long as you comply with the repayment schedule. The Consumer Credit Counseling Service is a non-profit organization which is partially funded by large institutional creditors.