What happens to your credit after bankruptcy?

This has to be the most common concern expressed amongst visitors to our website and questions asked during appointments. It is not what you think. What you think will happen does not. People are always surprised to learn that your credit score and overall credit profile typically dramatically improve. Shut the front door right? How can this be true? Sometimes, the images your mind can create are pretty far-fetched. I remember thinking before I did bankruptcy work, I wonder if the “bankruptcy people” like follow you in a grocery store and inventory what you are buying. No! They certainly do not.

I tell people constantly the most difficult part of filing a bankruptcy is when the word bankruptcy enters your mind. It gets easier from there. The actually process of bankruptcy is fairly simple. And the outcome of bankruptcy is even better. What could be better than eliminating unwanted debt? You can get on board with that right? Who couldn’t?

The result of filing bankruptcy is your credit profile improves because you have less debt. Now future lenders are still going to want to know you can pay back a loan they give you. It is not like just having no debt automatically qualifies you for a loan. The lender will want to know if they lend you money you have income to pay it back. But—you have no debt! With no debt and income, lenders are more confident you can pay back their loans. And that is why bankruptcy is better than no bankruptcy. Filing bankruptcy allows you to move on with your life and get past the “events” that led to the debt to begin with.

Call now for a free strategy session from a MN bankruptcy attorney at Kain & Scott

When the time is right, or when you are ready, reach out to Minnesota’s MOST kind and helpful bankruptcy law firm at www.kainscott.com. You will be so glad you did!