chapter 13 bankruptcy attorney

When Is A Chapter 13 Bankruptcy Deleted off Your Record

It may come as a surprise to find out that a Chapter 13 bankruptcy is often discharged sooner than a Chapter 7 bankruptcy. This is because a Chapter 13 bankruptcy restructures your debts and a good portion of them are paid off in a three to five year period.

Because the repayment plan is in place and the creditors typically recover a good portion of their outstanding bills, your Chapter 13 is usually deleted seven years from the filing date as opposed to the 10 year period for a Chapter 7 bankruptcy. It is also important to know that a Chapter 13 bankruptcy has a lesser effect on your credit rating than a Chapter 7 – again for the reason that a good portion of your debts would be paid off.

If you opt to declare a Chapter 13 bankruptcy, chances are that you were struggling financially for some time before deciding to file. Some or all of your accounts may have been in debt prior to filing. However, if an account was never late before you declared bankruptcy, it is removed seven years from the date bankruptcy was filed.

Chapter 13 bankruptcies are often regarded as more optimistic than Chapter 7 bankruptcies. However, both can turn out to be life changing events and help rebuild your credit back to better than it was.

Recovering from any bankruptcy is a long process, but worthwhile when you find yourself able to afford to keep your house, vehicles and pay your bills on time. Here are some of the things that you can do to recover your credit rating:

  • Explore the option of getting a secured credit card. Show you can manage it well and improve your credit rating. With this card, you provide the issuer with a deposit which serves as your credit.
  • Make every incoming bill a priority and pay it on time. Your payment history is crucial to obtaining a good credit rating. Keep all your accounts current.
  • Check with family members to see if you can be an authorized user on their credit cards. This way you have permission to use the card, but are not responsible for making payments – the original card holder is responsible. You would pay the card holder for debts you incurred.
  • Try adding your cellphone and utility bills to your credit report. You get an instant increase in credit rating by paying your bills on time.

Filing for bankruptcy is confusing, frightening and stressful. At Melaragno, Placidi & Parini we understand that. We have decades of hands-on experience helping debtors navigate bankruptcy proceedings. We are here to help you. Learn more at