The decision to file the bankruptcy can be a challenging one. However, it proves to be the ideal way to attain an entirely new financial start in most cases. Simply put, bankruptcy is a legal process that enables people to get relief when they have incurred debt and fallen behind.
Hence, when you start bankruptcy proceedings, you have a chance to file under various chapters. The Chapter 13 bankruptcy enables the debtors for reasonable payments for a fixed time where the majority of the debts can become clean.
If you are planning for a Chapter 13 bankruptcy or have filed one, you might think about all you can do to rebuild your credit score and how to rebuild credit fast. You need to get in touch with an expert bankruptcy attorney who can enable you to accomplish the same. Also, the Chapter 13 repayment plans usually last for three to five years. To know more about this, you can check out Spokane, WA.
How long will bankruptcy stay on the credit report?
Today, several people are not comfortable with filing bankruptcy as they think it can stay on the credit reports for about a decade. But you need to know about the 10-year rule applicable to the Chapter 7 bankruptcy cases.
It is interesting to note that when you are filing under Chapter 13 bankruptcy, then the bankruptcy will remain on the credit report for about seven years. For instance, if there is a five-year retirement plan, then the bankruptcy will stay on the credit report for about two years when you have completed the plan.
When you are thinking of rebuilding your credit during Chapter 13 of bankruptcy, it becomes evident that you get in touch with an expert attorney.
Chapter 13 bankruptcy ideal practices for rebuilding the credit
A few steps that you can opt-in for when you are rebuilding your credit include the following:
- You can open a credit builder loan or card to develop a constant payment history,
- You can ask a close friend or a family member to add the name to your old credit card.
- You can also ask a close friend or family member to co-sign any loans you wish to take out.
- You might also want to review the credit report to find any inaccuracies and disputes as and when required.
Is there any legal restriction on the incurring debt in a Chapter 13 case?
In some places, a local bankruptcy rule exists that suggests that you need to get a court order before incurring a debt that goes beyond $10,000.00.
Can you qualify for the consumer debt during a pending chapter 13?
The answer is yes. The vehicle loans, credit cards, and residential loans can get accomplished when there is a Chapter 13 case. One of the challenging loans here is the mortgage loan, however, it’s possible after the chapter 13 bankruptcy, which has been pending for a long time.
An expert lawyer can help you with expert guidance and help you accomplish your goal. Ensure that you come across an expert attorney who has know-how and expertise in this domain.