By Dave Kelly, Minnesota Bankruptcy Lawyer<\/p>\n\n\n\n
I don’t claim to be a credit expert. What I know about credit and the effect of bankruptcy filing on it is what I hear from my clients. Almost everything I know is hearsay. It would not be admissible as evidence in court. But I’ve heard the same thing many times and from many different people. I may have some wisdom on the subject that I can pass along.<\/p>\n\n\n\n
One of the most common questions I hear is on the phone is “won’t filing bankruptcy wreck my credit forever?” Typically these callers are deep in debt. They are spending all their energy trying to juggle various credit accounts – accounts that they will never be able to pay. They may be using credit to pay credit, taking cash advances on one to make payments on another. The juggling act gets to the point that it is hard to think about or imagine anything else. <\/p>\n\n\n\n
The answer to the question is NO. It is true that the bankruptcy filing will show on your credit report for ten years. But it is not true that your credit will be harmed for that whole time.<\/p>\n\n\n\n