Credit scores and bankruptcy

When someone schedules an initial consultation with me to discuss their debts and what options they have to resolve their debts,  their credit score is often on their mind. People want to know how filing bankruptcy will impact their credit rating. It is difficult for me to give an exact answer. Once a client retains me to file bankruptcy, I use a service to pull their credit reports (with my client’s permission, of course!) so I can enter information about their creditors into their bankruptcy petition. That service also provides me with a report to share with my clients. The report includes an “analysis” of what the company believes my client’s credit score will be one year after filing bankruptcy. It usually shows that the client’s credit score will improve/increase one-year after filing bankruptcy. I tell my clients not to take that “analysis” too seriously, but it is interesting to see. Only time will tell, of course, whether a person’s credit score will actually improve in accordance with that company’s prediction.

Recently, Bloomberg posted an article regarding credit scores and an upcoming change in how credit scores are calculated. The main point of the article is that this change will “reduce the importance of overdue medical bills and remove blemishes on once late, paid-off accounts.” This is good news for many people. 

Elizabeth Rosar Chermack is a Minnesota Bankruptcy Attorney, and can represent you in your bankruptcy matter.  Call (952) 491-0390 or send an email to to schedule a consultation with Liz.

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Elizabeth Rosar Chermack, Attorney at Law, is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code.

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