The legal process concerning Chapter 13 bankruptcy helps one who has emerged submerged in debt to make a fresh financial start all over again. It prevents the creditors from regularly approaching the person and offers affordable repayment methods over a fixed period of time to wipe off all the debts. Such debt repayment plans under chapter 13 typically last between three to five years. To ensure a smooth legal process, one must take help from an experienced bankruptcy attorney from the law office of Corey L. Mills. Moreover, one can also receive tips on restoring a decent credit score to take the finance under control once again.
How Long Does One’s Credit Report Contain The Record Of Bankruptcy?
People tend to think twice or thrice before filing for bankruptcy after knowing that it can sustain their credit history for about ten years. But most people are aware of the fact that the rule is only applicable to Chapter 7 bankruptcy cases. If a person files for bankruptcy under Chapter 13, it only stays on the credit history after filing for up to seven years. For instance, if one agrees on a five-year repayment plan, it will stay on the credit history only for the next two years after completing the plan.
How To Rebuild The Credit Score During Chapter 13?
While in the process of completing the repayment plan adopted under Chapter 13 bankruptcy, one can adopt the following steps to restore a fair credit score.
Establishing A Regular Payment History:
Establishing consistency in the payment history will help one to rebuild the credit score. The best way to do this is by opening a credit builder card.
Take Help From Family Or Friends:
One can consider taking help from friends and family to reestablish a good credit record. For this, all one needs to do is ask them to include the name of their old credit card or co-sign a loan taken out by the person who filed for bankruptcy.
Will A Chapter 13 Bankruptcy Early Repay Help Rebuilding Credit History?
While early repayment of the Chapter 13 plan might not always offer an immediate discharge, a credit score boost would also depend on the situation.
Final Thoughts:
Consider speaking to an attorney about all the possible implications before filing a Chapter 13 bankruptcy, who will offer valuable advice on managing such situations.
