Personal Finance and Investing

The answer to the question of how long a bankruptcy will keep you from getting credit isn’t as straight-forward as you might think. Generally speaking, a bankruptcy filing remains on your credit report for 10 years. However, successfully discharged Chapter 13 bankruptcy proceedings will usually remain on your credit report for only seven years.

Chapter 7, 11 and 12

If you file for bankruptcy under Chapter 7, 11 or 12, the bankruptcy notation will be on your credit report for 10 years, without exception. Even so, there have been cases reported in which individuals were able to obtain credit in as little as two years after they filed for Chapter 7 bankruptcy.

Chapter 13

Since Chapter 13 bankruptcy is basically a debt restructuring plan and not liquidation, credit reporting agencies will typically expunge a successfully completed Chapter 13 bankruptcy from your credit report after only seven years. This gives individuals an added incentive to choose this form of bankruptcy, in which creditors can look forward to getting most if not all of their money back eventually.

The seven year period begins as soon as you file for Chapter 13 bankruptcy. Since a typical Chapter 13 bankruptcy lasts for between three and five years, the bankruptcy notation may be lifted in as little as two years after you successfully complete a Chapter 13 filing.

The length of time a bankruptcy stays on your credit report is one factor in determining which form of bankruptcy is right for you. Chapter 13 bankruptcies remain for the least amount of time, but they may not always be your best bet.

If you click here you can get more information on how you can deal with bankruptcy. At my site http://www.avoid-bankruptcy.info/ you will be able to determine what you should do before filing bankruptcy.

Article Source:

http://EzineArticles.com/http://www.ezinearticles.com/?expert=Jon_Kozlov

Similar Posts:

• Bankruptcy Debt Discharge
• Computing Self-Employment Tax
• Have You Checked Your Credit Report Score?
• Free Government Debt Consolidation – Pay Off Your Loans With Government Debt Relief
• Pay Debts in the Current Economic Climate