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Credit Repair vs Bankruptcy?

You might be wondering why there is a question mark in the title of this article: Credit Repair vs Bankruptcy?

We are making a point with the question mark. We know that some people perceive credit repair and bankruptcy as options for problems they are facing, but, in reality, these two options are not comparable because the goals of each are extremely different. Let’s look at the two closely.

Credit Repair

Credit repair is performed by profit motivated businesses or individuals. The goal of a credit repair service is to attempt to remove credit entries on a credit report to increase an individual credit score. Different credit repair services have different methods on how to achieve this, but none of them are a 100% conclusive service where results can be proven. Credit repair services are paid to attempt to improve a credit report. Many credit repair services try to compensate for not being able to prove their service effectiveness by providing clients with a money back guarantee which can be a challenge to claim. If their service was proven to be effective, then why would a money back guarantee be necessary? This could be a good question to ask yourself before engaging in a credit repair service. People are drawn to credit repair services because it seems to be a quick solution to low credit scores.


Bankruptcy is a process provided by the government, specifically the federal courts, that is available to anyone who qualifies to eliminate debt and allow businesses and individuals to have the ability to continue to function and be a contributing asset to the economy. The bankruptcy process was not created with a profit benefit as a goal in its inception. The goal of a bankruptcy is to eliminate debt. It can discharge your debt that is causing negative entries on your credit report, but its impact on your credit report is much more organic and effective. It allows you to improve your credit report over time by eliminating debt that can be detrimental to your credit report over time.

You can easily see the differences here:

Credit Repair:
1. Created by businesses to profit from providing the service
2. Can possibly remove negative credit entries from credit report in only some situations if any to improve credit score
3. Highly unregulated processes that may not be proven to work
4. Goal is to attempt to remove credit entries although the attempt may not suffice in removing credit entries

1. Created by the government to discharge debt
2. Can definitely eliminate debt
3. Federal court regulated process that has been proven to be effective since inception
4. Goal is to eliminate debt completely to allow those who use the process to continue to function as a positive asset to the economy

As you can see, the differences between credit repair and bankruptcy is hardly comparable. Credit repair is all about improving credit score and bankruptcy is about eliminating debt. Eliminating debt will eventually improve your credit score, but improving your credit score with credit repair will not eliminate any debts.

Carefully consider your options when you have a goal in mind regarding debt resolution. Make sure that what you choose is going to have the affect that you are looking for.

For more information on how to file a bankruptcy, contact Bankruptcy Law Professionals at 855 257-7671. We offer free attorney consultations by phone on in-person.

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