How does Chapter 13 Bankruptcy affect my ability to acquire new credit?

Chapter 13 Bankruptcy affects the ability to acquire new credit in Washington in the short-term, but can be beneficial for certain individuals in the long-term. Immediately after filing for Chapter 13 Bankruptcy, a debtor’s credit rating and score will lower substantially. This affects an individual’s ability to borrow money, whether through credit cards or through a loan, as they will likely be seen as a high-risk borrower. In addition, having a Chapter 13 bankruptcy on one’s credit report will remain for seven years, which can make it difficult to acquire credit during that time. However, while filing for Chapter 13 Bankruptcy can initially be damaging to a debtor’s credit, it can also be beneficial in the long run. Not only does filing for bankruptcy discharge certain debt, but it can also help an individual rebuild their credit. On a credit report, repayments from a Chapter 13 plan will be listed as such, which can be an indicator of responsibility to lenders. For this reason, some lenders may be willing to provide credit to someone who has recently gone through a Chapter 13 bankruptcy. In sum, Chapter 13 Bankruptcy affects one’s ability to acquire new credit in Washington in the short-term, but can be beneficial for certain individuals in the long-term. It is essential for individuals to research their options and weigh the pros and cons of filing for Chapter 13 Bankruptcy, prior to making a decision.

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How does Chapter 13 Bankruptcy affect my ability to acquire new credit?

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