If you’re struggling with credit card debt, medical bills, or personal loans in Minneapolis, you might be asking yourself:
“Do I have to wait until my debts are in collections before I can file for bankruptcy?”
The answer is simple. No, you do not.
At Walker & Walker, we have helped thousands of Minnesotans file for bankruptcy before their debts ever reached collections. In many cases, filing earlier protects your credit and helps you start rebuilding sooner.
Bankruptcy Is Based on Debt, Not Collections
Bankruptcy is about the debt you owe on the day you file. It does not matter if the debt is current, late, or already in collections.
If you live in the Minneapolis area and you know you cannot keep up with your bills, you do not have to wait for collections, lawsuits, or wage garnishments. In fact, filing before these things happen can reduce stress and make your recovery easier.
Filing Early Helps Your Credit Recover Faster
Here is what typically happens when you delay filing:
- Creditors report missed payments
- Accounts may be turned over to collections
- Your credit score starts to fall
When you file for bankruptcy before this happens, you stop the negative reporting. Once your bankruptcy is filed, creditors can no longer add missed payments or other negative information to your credit report. With fewer negative marks, your credit score can start to improve more quickly.
What Happens After You File
Many people are surprised at how quickly their credit begins to recover after bankruptcy. Here is what most of our Minneapolis clients experience:
- Approval for a car loan just a few weeks after discharge
- New credit cards within about two months
- A credit score around 720 within two years
- Mortgage approval in roughly two years
Bankruptcy does not ruin your credit forever. In most cases, it is the fastest way to rebuild and move forward.
Waiting Usually Makes Things Worse
If you already know you cannot afford to pay back your debts, waiting rarely helps. Debt collectors may sue you, garnish your wages, or take other actions that only make the situation harder.
By filing early, you avoid those problems and take control of your financial future.
Talk to a Minneapolis Bankruptcy Attorney Today
If you are considering bankruptcy and want honest advice, we are here to help. At Walker & Walker, we offer free consultations with no pressure. Just answers, options, and a clear plan forward.
Call 612-824-4357 today to speak with a local Minneapolis bankruptcy attorney.
Let us help you get out of debt, protect your credit, and build a fresh start with confidence.