For most people, it’s commonly thought that filing for bankruptcy will ruin their credit. In fact, “Will filing for bankruptcy ruin my credit?” is a question we often get. To answer that question, the team at Kain + Henehan takes a more in-depth look at how bankruptcy affects your credit score and what you can do about it before, during, and after you file for bankruptcy.
Transcript:
” This is probably one of the biggest myths we have is I will never be able to get lending again after I file bankruptcy. My credit score is going to tank all the way to the very bottom. I won’t be able to purchase a house. I won’t be able to get finance for a vehicle. This is the biggest myth I think surrounding bankruptcy because clients rebound quite quickly after a bankruptcy. Usually, I see credit scores fall between 100 and 150 points when people file bankruptcy. There is that drop, but within a year, two years, people are going to be really close to where they were. If you were in the 700s, you’re going to be back there. If you were in the 600s, you’re going to be back there. You are going to be able to get lending. You are going to be able to get finance for a mortgage. Many of my clients are homeowners just two years or so post-bankruptcy. You’ll get car offers immediately after filing bankruptcy. You’ve got to be a little careful with interest rates and that sort of things, but no, you’re not going to be a piranha in the lending world. You’re going to be able to get back out there and do what you need to do in order to move on with your life.
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If you were struggling and your credit score was in the lower range, such as the 600s, your score would rebound faster than expected. Contrary to the belief that bankruptcy is a financial death sentence, it is actually a legal lifeline designed to help you discharge debts you cannot repay, rebuild your finances, and restore your credit over time.
Learn More About Bankruptcy From Kain + Henehan
There are many things that people think they know about bankruptcy, but they may not be true. Before you make any decisions about a possible bankruptcy filing, learn more about it from bankruptcy experts.
Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form to discuss your case during a free consultation and help you decide if bankruptcy is the right option for you.
