Consequences of Personal Bankruptcy
A personal bankruptcy signals to a potential creditor, rightly or wrongly, that you would not take preventive steps to stop your downward financial slide. As an extremely negative mark on your credit history, it will be extraordinarily difficult to overcome when it comes to getting new credit. A personal bankruptcy guarantees you will pay higher interest rates and extra fees and charges for credit, if credit is offered at all.
Obtain secured, pre-paid, or stored value credit cards so you have an automatic check on charges you can make. Get a reliable person with good credit to co-sign for any credit or loans you must have. Make payments in full and on time. In addition to building good credit for yourself, you also maintain your friend's good credit.