Bankruptcy can offer you relief from the overwhelming burden of debt, but it can also impact your finances. Record of a bankruptcy filing will remain on your credit report for years, and the filing will be considered in calculating your credit score. As a result, it is essential that you consider the impact that a filing can have on your credit.
The time a bankruptcy is on your record depends on the chapter you file.
Each type of bankruptcy involves different terms. Public record of a bankruptcy on a credit report is no exception to this. This is why it is important for those filing for bankruptcy to explore their options to determine which chapter will be most beneficial to them.
How long will a chapter 13 bankruptcy remain on your credit report?
Chapter 13 bankruptcy requires you to repay at least part of your debts. This repayment will be done according to a three-to-five-year repayment plan filed with the court. Under this chapter, the bankruptcy will remain on a credit report for seven years.
How long will a chapter 7 bankruptcy remain on your credit report?
Unlike the filing of a repayment plan under chapter 13 bankruptcy, chapter 7 bankruptcy involves liquidating eligible assets to repay debts and discharges other debts. This type of bankruptcy remains on a credit report for 10 years from the filing date.
If you wonder which type of bankruptcy will offer you relief from debt and the strongest foundation for a better financial future, discuss your needs with an experienced bankruptcy attorney.