Chapter 13 bankruptcy is usually removed from your credit report seven years after the filing date according to Experian, Equifax, and Transunion. If you need help filing bankruptcy in Mississippi, reach out to an experienced Jackson, MS bankruptcy lawyer. Our Mississippi bankruptcy attorney T.C. Rollins helps people file chapter 13 bankruptcy.
How does Chapter 13 bankruptcy differ from Chapter 7? In a Chapter 13 bankruptcy case, you will pay back some of your debt. But since it is being repaid, it usually doesn’t hurt your credit as bad as in Chapter 7, which stays on your credit for 10 years.
Bankruptcy is considered a negative event on your credit and the filing of the bankruptcy case will lower your credit score. A bankruptcy discharge is the order eliminating your debt and occurs at the end of your case. The bankruptcy discharge itself does not affect your credit, but the discharge results in negative information about your debts being removed from your credit. Your credit will usually improve once the discharge removes the negative reporting about your debts.
A Chapter 7 discharge is granted much sooner than a chapter 13 discharge. A chapter 13 case lasts 3-5 years and therefore the positive impact of the discharge is delayed until then. Once you receive the chapter 13 discharge there is potential for you to have pretty good credit since the bankruptcy filing is now 3-5 years in the past.
Bankruptcy is a public record and will never disappear completely. Even when it is removed from your credit report a bank could still find out about the bankruptcy case from other sources. But just because you filed a bankruptcy case does not mean that you will never be able to get debt again. We have had clients that were able to take out home mortgages and car loans while in a chapter 13 case. You must get court permission prior to incurring debt while in chapter 13 bankruptcy.
If you need advice about whether or not Chapter 13 bankruptcy is for you, don’t hesitate to contact our Jackson bankruptcy attorney today.