Chapter 13 Repayment Plan
May 25, 2022
If you’re experiencing troubling financial times, you may consider filing for bankruptcy. However, one of the biggest fears individuals face is that bankruptcy will entirely ruin their credit.
Credit is essential, and we understand these concerns. Fortunately, a bankruptcy will not destroy your credit, and it is possible to rebuild your credit, even while satisfying your Chapter 13 repayment plan.
What Is a Chapter 13 Repayment Plan?
Chapter 13 bankruptcy is also referred to as the “wage earner’s bankruptcy.” It offers individuals many benefits over other types of bankruptcy, including Chapter 7.
When you file a Chapter 13 bankruptcy, you create a feasible repayment plan and submit it to the court for approval. If the bankruptcy court approves your plan, you will spend the next three to five years fulfilling your repayment obligations.
While it does take longer to repay your debts under Chapter 13, many appreciate the advantage of having more time to pay and the ability to keep your property. Chapter 13 puts you on a path to financial freedom while clearing your debts.
How Long Does a Chapter 13 Bankruptcy Stay on Your Credit Report?
Every bankruptcy is different, but you can typically expect your Chapter 13 bankruptcy to stay on your credit report for seven years.
Once you complete your repayment plan and pay off you part or all of your debts, those debts are discharged. If any of your debts were delinquent before filing for Chapter 13, those debts fall off your credit report seven years after the date of delinquency. All other debts should fall off your report at the same time as your Chapter 13.
Let a Skilled St. Louis Bankruptcy Attorney Help You
AKS Law has been helping clients with their bankruptcies for over a decade. Our team is dedicated to providing the most personalized experience, as we understand every case and client is unique. If you’re considering bankruptcy, we’re here to help. Call us today at (314) 866-3955 or contact us online to schedule your consultation today.