The Effects Of Filing Chapter 7 Bankruptcy in Monticello, MN

Posted by Wesley Scott on May 10, 2017 at 4:31 PM
Wesley Scott

Monticello-MN-Bankruptcy-Lawyer.jpgMost of our Minnesota guests have a lingering concern about credit should they decide to file a Chapter 7 Bankruptcy. If you are thinking about filing a chapter 7 bankruptcy in Monticello, Minnesota, this is a concern you naturally have.

Let me tell you that what you think about your credit after Chapter 7 Bankruptcy is not necessarily true. In fact, in most instances it is flat out wrong. I think for a lot of Minnesotans, what holds them back from getting their lives back is this notion that your credit after bankruptcy will not exist- it’s sort of over for you.

So, instead of getting their lives back, I think many Minnesotans suffer through unworkable out of state debt consolidation plans that look horrible on your credit anyway and in many cases just plain don’t work. The payment is either way too large or/and one or more of your creditors will not put up with a modest payment from you when they could, instead, garnish your wages and receive a much bigger payment.

Of Course, the debt consolidation companies do not tell you this at first do they? It’s only after you make payments for a year or so that you find out this “plan” will not work and you have just wasted money and time.


You are not misreading this headline. We believe filing a chapter 7 bankruptcy and discharging debt improves your credit. Why? First, for most of our Minnesota guests we meet with, their credit is already dicey. If you are behind on your credit card payments, mortgage payments, or any other debt, your credit is already suffering. If you are doing any form of debt consolidation plan you are advertising to the world you are in financial distress and your credit score is suffering.

But, when you file a chapter 7 bankruptcy and eliminate your debt, it looks better on your credit report because you have no debt! Because you have no debt, your credit score actually increases. It’s fun having guests call us after receiving their discharge surprised by the fact that their credit score has increased!

Sometimes, life is not the way is seems. You would think that struggling to pay a massive debt consolidation payment would be better than filing a chapter 7 bankruptcy on your credit, and you would be wrong!

I feel horrible for people who spend years in a burdensome debt consolidation plan only to file bankruptcy in the end anyway. We humans are unusual in the sense that it seems like we need to suffer before we get relief from a problem.


If you file a chapter 7 or chapter 13 bankruptcy, it will be on your credit report for 10 years- from the date you filed the bankruptcy. Just because you filed a bankruptcy and it’s on your credit report for 10 years does not mean it now is the end of your credit life. Quite the contrary, filing a chapter 7 bankruptcy means that you have no debt and you can’t file again for 8 years!

Creditors know this so they feel more confident in getting paid back. Plus, I am not going to kid you, for a year or two after you file a bankruptcy, the interest you pay on financing may be higher. I say “may” because there are ways to mitigate that too.

For example, do you think a person asking for financing after bankruptcy, with no deposit will get better financing or the person who pays 1k down? What is the person had 3k down? The point is you will get better financing terms if you are able to pay a deposit down on your purchase. The bigger the deposit the more likely it is you will get better financing terms.

We have plenty of stories of Minnesota guests who purchased homes and cars immediately after filing bankruptcy and receiving their discharge. It seems strange until you think about it and put yourself in the lender’s shoes.




One of the best things you can do to address your fear of the effect a chapter 7 bankruptcy will have on your credit is to hire a Minnesota bankruptcy law firm that HELPS you 1) get rid of debt and 2) helps repair your credit fast. Many law firms will file a bankruptcy for you and get you a discharge. But, once you get your discharge, you are sort of screwed and on your own.

We have heard many unfortunate stories of guests who have used other law firms ain the past and once they received their discharge, the law firm would not even take their phone call anymore? That is harsh and totally unacceptable in my opinion.

Once you receive your discharge, then we go to step 2. Step 2 is helping you repair your credit fast. How? We provide everyone of our guests their own Kain & Scott Credit Repair Specialist. We provide all of our guests with FREE judgment removal (guests pay costs); FREE credit repair work; FREE list of Minnesota professionals who help our guests with auto and home financing; and a FREE mini course to learn tricks to improve your credit faster!

In short, at Kain & Scott we address our client’s concerns about credit and the effects a chapter 7 bankruptcy does or does not have on their credit. At Kain & Scott, we are not done when you get your bankruptcy discharge, we still provide step 2- credit repair work!


If you are contemplating filing a chapter 7 bankruptcy in Monticello, Minnesota and you fear the effect of a chapter 7 bankruptcy on your credit, fear no more.

Getting rid of debt and repairing your credit fast is the formula Kain & Scott uses to solve an overwhelming debt problem for good. At Kain & Scott, we don’t judge you we, HELP you get your life back!

When the time is right, and when you are ready, reach out to Kain & Scott’s 24/7 Minnesota Bankruptcy helpline at You will be glad you did. We have helped thousands of Minnesotans get their lives back, and we can help you too.

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Topics: Bankruptcy, Monticello