As a bankruptcy attorney, this is the most common question we get from concerned clients prior to filing bankruptcy. What will my credit look like after filing Chapter 7 Bankruptcy in Minneapolis, MN? The question is legitimate. Who would not be concerned about the impact of Chapter 7 Bankruptcy on your credit?
Chapter 7 Bankruptcy is on your credit report for a period of 10 years. However, it is my opinion your credit improves after filing bankruptcy for a multitude of reasons. For example, how is your credit now? I spoke to a young man the other day who reported having 33k in credit card debt but when I asked him, do you think you could get a loan today (he is current on all his credit card debt) he laughed and said no way.
The fact he laughed and said no way puts a finger on the real credit issue facing people who have overwhelming debt. Future lenders don’t give a rat’s butt if you pay your current creditors. What future lenders really want to know is will you repay me if I lend you money today?
If a lender lends a person with 33k in credit debt money today, the lender is not highly confident you will be able to repay the debt (considering you already have 33k in credit card debt). Now, consider if the 33k in debt were gone? All of sudden you have the ability to repay a future lender because you have no debt. Crazy, but true.
In short, filing Chapter 7 Bankruptcy improves your credit profile because you go from debt to often no debt at all.
When the time is right, or when you are ready, reach out to Minnesota’s HIGHEST GOOGLE REVIEWED bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.