Effects of filing Chapter 7 Bankruptcy on your credit in Minneapolis, MN
Thousands of Minneapolis, MN residents contemplate filing Chapter 7 Bankruptcy each year. The inevitable question that arises is how will filing a Chapter 7 Bankruptcy in Minneapolis, MN affect my credit score? It is a respectable question and one that I would want to know the answer to myself. So many people think if you file Chapter 7 Bankruptcy, your credit score is sort of doomed forever. Not true at all. In fact, in many instances, it is just the opposite.
Consider Bruce who lives in South Minneapolis. Bruce has 27k in credit card debt and 12k in unpaid medical bills and past rent. He has two judgments against him and he is delinquent on his credit card payments by at least 8 months. How do you suppose Bruce’s credit score and credit is now? Not so good right? Well, what would happen if Bruce filed a Chapter 7 Bankruptcy in Minneapolis, MN? In about a 4 month process, his liability on this debt would be legally discharged, or wiped out. Once Bruce receives a discharge in bankruptcy we can then utilize another legal proceeding to remove the two judgments from the public record.
So when all is said and done, Bruce has no liability on any debt and the public record is now devoid of any judgments. In short, Bruce just improved his credit profile and likely his credit score. Why? Because he went from a lot of debt and multiple judgments to no debt and no judgments. Typically, your credit score rises when you reduce your debt.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, or when you are ready to get your life back in Minneapolis, MN, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.
