What Does Bankruptcy Do to My Credit in Minnesota?

Posted by Wesley Scott on June 21, 2021 at 7:15 AM
Wesley Scott

What Does Bankruptcy Do to My Credit in MinnesotaA lot of people who suffer with debt want to know how does bankruptcy affect my credit? There are all kinds of misconceptions about bankruptcy in the marketplace. I have had some people tell me they didn’t think they could get any credit after they filed a bankruptcy.

This is not true at all. Over the many decades, LifeBack Law Firm has helped literally tens of thousands of Minnesotans get their lives back and most of them go on to obtain credit. Most go on to purchase homes and vehicles and all sorts of other items.

Bankruptcy Is the Beginning of Your Credit Score Improving

Bankruptcy is not the death of your credit. In fact, I would strongly argue bankruptcy improves your credit. What? Are you joking me right now? No, I am not. Bankruptcy serves a very important function in society. It rids people of overwhelming debt. Do people with overwhelming debt purchase things? No. They cannot afford to.

How Lenders Will See You After Bankruptcy

Now, take the person who had 50k in credit card debt and $2,000.00 a month in credit card payments and pretend this debt and those payments go bye bye. Is this person a better credit risk before or after filing bankruptcy? They have a far better credit profile AFTER bankruptcy because they have no debt and no payments.

Current Versus Future Lenders

Future lenders don’t care whether your current creditors get paid or not. Future lenders want to know are you going to pay me? If you have 50k in credit card debt am I not going to worry that you might be on the precipice of failure? Consider the same lenders thoughts if you have no debt and no payments owing to anyone? You are a much better credit profile after bankruptcy than before bankruptcy.


Many people find that their credit scores actually rise after bankruptcy. This is true because you have no debt. That shocks a lot of people. When the time is right, when you are ready, reach out to Minnesota largest bankruptcy law firm at www.lifebacklaw.com. You will be so thankful you did.


Topics: bankruptcy in minnesota

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