Will filing chapter 13 affect my credit?


Yes. All events affecting your credit are recorded. That includes prompt payments, slow pays, charge-offs, and judgments as well as a bankruptcy filing. If you are currently contemplating bankruptcy, then it is likely that your current credit rating has already been negatively impacted. A chapter 13 bankruptcy discharge will usually remain on a credit bureau for seven years, whereas a chapter 7 discharge will likely remain on a credit bureau for ten years. However, much, if not all, of the negative impact can be ameliorated. A chapter 13 debtor that continues to make payments timely to creditors paid outside of the chapter 13 plan will have very little difficulty obtaining additional credit at reasonable rates upon discharge. The reality is that most people find they are able to completely rebuild their credit within 3 to 5 years (the typical length of a chapter 13 plan).