It is likely the most common question bankruptcy attorneys get. You want to know what is the “impact” of filing Chapter 7 Bankruptcy on your credit, right? Of course! It is not what you think. In fact it is the opposite. But don’t take my word for it, ask our guests!
Here is the plain truth. Filing Chapter 7 Bankruptcy is on your credit report for 10 years, period! Now what does this really mean? Let me ask you something. Can you get credit now? Most of our guests would say a) we cannot get credit now or b) if we could we would pay really high interest or need a co-signor. You see, when you have debt, future lender are going to be “nervous” to lend you money because you are in financial distress already and what the lender worries about more than anything, is will you pay the lender?
Now, what happens to your debt after filing a Chapter 7 Bankruptcy and getting a discharge? The debt is now gone. Your credit profile is better because you have no debt! And now, the future lender worries less about getting repaid because a) you have no debt and b) you cannot file Chapter 7 Bankruptcy again for 8 years.
And this is why your credit score and credit profile often improve IMPROVE after you file a Chapter 7 Bankruptcy and get a bankruptcy discharge. You have no debt and now the future lender is more confident of getting repaid. We can never guarantee you exactly what your credit score will be after Chapter 7 Bankruptcy but let’s just say it is not uncommon for credit scores to increase after bankruptcy. Crazy but true!
CONCLUSION
When the time is right, or when you are ready, reach out to Minnesota’s HIGHEST GOOGLE reviewed bankruptcy law firm at www.kainscott.com. You will be so happy you did!
