How Does Filing Chapter 7 Bankruptcy Affect My Credit Score?

Posted by Wesley Scott on June 6, 2018 at 1:46 PM
Wesley Scott

Many people believe that if you file Chapter 7 Bankruptcy you will ruin your credit forever and you can basically forget about ever getting credit again. This is complete and utter nonsense and here's two reasons why...

One, you are drowning in overwhelming debt, what are the chances you would get credit now? Even if you are current on all your debts and have a decent credit score getting credit can be difficult. Why? Because the bank is worried when you have a lot of debt that if they lend you money, they might not get paid! Don’t believe me? I have a secret for you... Banks don’t care if you pay other banks. They only care if you are going to pay them.

Two, filing Chapter 7 and getting rid of your debt improves your credit. It is not unusual for people to file bankruptcy and see their credit score improve. Why? Because they have no debt. Potential lenders like it when you have no debt.

 

 

Call Today To Speak With A Chapter 7 Bankruptcy Lawyer From Kain & Scott 

When the time is right, or when you are ready, reach out to Minnesota’s highest google reviewed Chapter 7 Bankruptcy Lawyers at Kain & Scott. You will be glad you did!

Topics: Chapter 7 Bankruptcy, Credit Score