So many good Duluth residents think that if they file Chapter 7 Bankruptcy, they will ruin their credit forever. We hear this common misconception all the time. They also wonder if, after filing bankruptcy,
can I rent, can I buy a home, and can I get credit cards or vehicle loans again? These are all legitimate questions that I would want to know the answer to as well. But life is not always what it seems. I have a little secret to let you in on: future lenders don’t care if you can pay your current debt, what future lenders really want to know is will you pay us if we lend you money now? That is really what future lenders care about.
Now imagine most people who visit with us. They are swimming in a sea of debt. Most of these good
people are behind on their payments, maybe have judgments against them, or are maybe getting their
wages/accounts levied now. Can these people get credit? Oh hell to the no! Now, what about these
good people—you know the ones who visit with us and say we have like 50k in credit card debt and we
are current on all the payments but we see this (fill in the blank event coming) and we know then that
the juggling act is over. Chances are these people could not get credit because future lenders will worry
that you will not be able to pay them back. If you think the juggling act is over, don’t you think the future
lender will think so too?
Yes, it is true, filing bankruptcy improves your credit profile because you go from debt to no debt.
When the time is right, or when you are ready, reach out to Minnesota’s LARGEST CHAPTER 7 and 13
WEBSITE at www.kainscott.com. You will be so glad you did!