Your credit status will be affected by filing bankruptcy. If your credit is perfect, bankruptcy will have a negative effect on your credit. If your credit is substantially impaired, now or in the near future, filing bankruptcy may not affect your credit status negatively, and it may your improve your credit status because, after filing bankruptcy you are debt-free, making your ability to repay any new credit better after bankruptcy than before, simply because you have no other debts to pay after declaring bankruptcy.