If you have gathered so many past due bills and closed accounts that it is causing you to get further and further behind, then bankruptcy may be your best option. Bankruptcy gives you relief from these things and serves as a way to put those debts you can't pay in your past. Once you have gone through the process of filing bankruptcy, you will need to rebuild your credit.
Get a secured credit card
A secured credit card will offer you the same benefits as an unsecured one, but you will only be able to go up to the limit that you have secured with your own money. These are the easiest cards to be approved for with a lower credit score and they do report to credit bureaus. Don't apply for a lot of them, hoping one offers you a line of credit. Instead, do your homework and only apply to the one you think you have the best shot of being approved for. This way, you won't get too many inquiries on your credit report, which can also lower your score.
Do not get a secured credit card confused with a prepaid one, which won't show on your credit report. A prepaid credit card is one you put money into, but you don't have to be approved for it and it can be used on a disposable basis or reloaded over and over again. These are the types of cards you can usually purchase at the checkout stand of major stores as well as online.
Watch your credit reports
Go through your credit reports. There are three credit reporting agencies and they can each have different things on them, depending on which agencies your creditors decide to report to. You can go directly to these companies, one by one for your reports, or you can join a website that allows you to see all three in one place. If you join one site, verify that it allows you to dispute false claims from the site. If you spot anything false, dispute it, and if the company can't prove you owe the debt within a certain time period, the claim will be removed.
Start rebuilding slowly
Rebuilding your credit should be done at a slow and steady rate. Paying bills on time, over a period of time, makes you look more responsible. Starting slow and by adding one new account at a time, gives you a chance to get used to making your payments on time each month before you take on more. This way, you won't find out that you are in over your head when it's too late to do anything about it besides closing some of those new accounts, which will also negatively affect your score.