What is the effect of filing Chapter 13 Bankruptcy on my credit cards?

Filing a Chapter 13 Bankruptcy will have a negative effect on your credit card debt. It is possible that you may be able to maintain some of your credit lines, but the filing will remain on your credit report for up to seven years, which can make it difficult to get new credit or favorable terms in the future. In a Chapter 13 Bankruptcy, you are required to propose a repayment plan to pay off your unsecured debt, such as credit card debt. This payment plan is usually three to five years in length and will make it difficult to manage your finances and pay off your debt. Generally, your payments will be higher than the amount of your regular payments and your creditors may not reduce the principal balance of your credit card debt. Additionally, creditors are able to challenge the repayment plan if they believe that you may not be able to pay off your credit card debt in the proposed timeframe. If your plan is rejected, you may have to pay back the entire amount of your credit card debt in full. This could put you in even more financial difficulty and make it even more difficult to pay off your debts. To sum up, filing for Chapter 13 Bankruptcy will have a negative effect on your credit card debt, including having a negative effect on your credit score and potentially having a higher payment plan that must be adhered to. It is important to speak with a qualified attorney to determine the best course of action for your particular situation.

Related FAQs

What is the effect of filing Chapter 13 Bankruptcy on my credit cards?

Related FAQs

Related Blog Posts