At the height of the Great Recession, many Minnesota residents filed for bankruptcy. Those numbers went down in recent years, but 2018 saw an increase from the previous year. According to data from the United States Bankruptcy Court District of Minnesota, 9,761 people filed for bankruptcy in 2018, which is a 1.54 percent increase from 2017.
Filing for bankruptcy will have an immediate negative impact on your credit score, but the long-term effects could be positive if you follow a few simple guidelines.
When people in Minnesota are struggling under the burden of unmanageable debt, they may not know what to do in order to obtain some relief. Such debt can result from unexpected illnesses, unemployment and overspending with credit cards and lines of credit. No matter how the debt ballooned, reaching solvency can involve either negotiating with creditors or filing for bankruptcy.