How does Chapter 13 Bankruptcy affect my credit score?

Chapter 13 Bankruptcy law affects your credit score in many ways. First, filing for Chapter 13 Bankruptcy will stay on your credit report for seven to ten years. This means that other lenders may be less likely to extend credit to you during this time. Second, it can also cause your credit score to drop significantly. While this will improve over time, it may take years for your credit score to fully recover from a Chapter 13 Bankruptcy. When you file for Chapter 13 Bankruptcy, creditors may also report your late payments to the credit bureaus. This will cause a further drop in your credit score. Additionally, if any debts are discharged in the bankruptcy, this will be reported to the credit bureaus and will cause your credit score to fall further. Although your credit score will certainly suffer in the short-term due to your filing for Chapter 13 Bankruptcy, it is possible to rebuild your credit in the long-term. By making on-time payments, minimizing your debt, and maintaining a good credit-to-debt ratio, you may be able to slowly rebuild your credit score. Additionally, if you successfully complete your Chapter 13 Bankruptcy plan, you may be able to have your debts discharged and this will be reflected in your credit report.

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How does Chapter 13 Bankruptcy affect my credit score?

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