Further suppose the debt is in default and you cannot keep up on the payments so credit cards, in particular, are reporting late payments on your credit reports. Obviously, this does not look good on your credit reports right?
This may seem incredulous, but filing Chapter 7 Bankruptcy in Minneapolis improves your credit and here are three reasons why.
First, the debt is now gone. If you file a Chapter 7 Bankruptcy the debt is eliminated so you are not debt free. Being debt free is better than having 40k in debt (30k in credit card debt and 10k in medical debt).
Second, when the debt is gone you no longer have any payments due on the debt because the debt is gone. When you are not required to make payments on the past debt that will free up disposable income for you to make other purchases like a home or a vehicle etc. (future lenders know this).
Third, future lenders don’t give a rat’s butt if you pay old creditors. What future lenders really want to know is are you going to pay us? In other words, when you have no obligations to any other creditors that makes you a more attractive candidate to the future lender. For one thing, you cannot file Chapter 7 Bankruptcy again for 8 years. The other issue is you likely fell into bankruptcy through no fault of your own, i.e. job loss, divorce, medical problem, business failure, etc.
Filing Chapter 7 Bankruptcy in Minneapolis, MN improves your credit. Having no debt is better than having debt and suffering.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, when you are ready to get your life back, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.
