What Happens At The End Of A Chapter 13 Bankruptcy ?
When you file for Chapter 13 bankruptcy the court allows a maximum time period of seven years to pay off the debts. As long as you are paying the debts off the bankruptcy case remains open. And as long as the bankruptcy case remains open your credit report will keep reflecting your bankrupt status. |
Sponsored Links :
|
A credit report will carry the bankruptcy status for an average time period of seven to eleven years. In this mean time you are allowed to clear of your debts. After the debts have all been cleared, the bankruptcy case is closed. Once the bankruptcy case is closed, you see a dramatic improvement in the credit reports and also notice a drastic change in the credit scores. However, all this depends on many factors which are in your control.
First of all, in these seven years period of time you should have paid all the payments without any delay or incurring late fees with the court. The court will certify if you have paid on time or not. if you have missed out any payments the court wills till notify the credit rating agency irrespective of whether you have cleared the debt or not.
The court by making a repayment plan is also allowing your credit to rebuild. During these seven years the credit has been actually improving because of the payments you have made. At the end of the Chapter 13 bankruptcy and after the case has been closed the credit rating basically improves because of the regular payments. Also, all the debts have been cleared off as well.
More Articles :
|
