Life After Chapter 7 Bankruptcy in St Paul, MN

Posted by Wesley Scott on June 17, 2019 at 10:56 PM
Wesley Scott

It is never what you think it will be. What people think will happen to their credit after bankruptcy is not really what happens. Many people think that if they file Chapter 7 Bankruptcy, they can forget about credit for the rest of their lives--forget about being able to finance a home, car, or anything else.

Of course I do have to remind people about their current financial state. If you have 60k in credit card debt and you are struggling to service that debt, can you really qualify for a mortgage now anyway? Highly doubtful you could even if your credit score is high. Why? Because the lender will be worried that, after servicing all this debt, you will not be able to pay a loan they give you. Makes sense right?

Now suppose you filed a Chapter 7 Bankruptcy and the 60k in credit card debt is now gone. All of sudden the lender thinks, well I bet they can now afford the loan payments if I were to give them a loan now. See, people mistakenly think future lenders care if you pay other creditors when you are applying for a loan. That is not what lenders really worry about. What lenders REALLY want to know is will you pay this bank back if they give you a loan now. Don’t believe me? I have had all kinds of guests with really high credit scores not be able to get a loan because of exactly this scenario. They can’t get the loan before a bankruptcy but they can afterwards!

Strange? Not really. When you think about this, it makes perfect sense. Having less debt is always more attractive to lenders than having debt. Life after Chapter 7 Bankruptcy is beautiful.


When the time is right, or when you are ready, reach out to Minnesota’s HIGHEST GOOGLE reviewed bankruptcy law firm at  You will be so happy you did!