Chapter 13 bankruptcy is a good option for indebted New York consumers who fall into one of two categories. New Yorkers who don’t qualify for Chapter 7 bankruptcy should look to Chapter 13. Also, Chapter 13 is usually better for consumers concerned about losing property. After filing Chapter 13 bankruptcy, New York consumers enter a repayment program that takes three to five years to complete. By contrast, qualifying debt is completely discharged in Chapter 7 bankruptcy, which typically takes just a few months to complete.
Both types of bankruptcy hurt credit scores and linger on credit reports for years. But the damage inflicted by Chapter 13 doesn’t last as long. However, most Chapter 13 filers find that it still takes time to fully recover from the lengthy process and rebuild a good credit score. Yet, recovery from Chapter 13 bankruptcy is easier when New York filers check their credit reports during the repayment period and after discharge.
Why New York Chapter 13 Bankruptcy Filers Should Check their Credit Reports
Unfortunately, bankruptcy filers in New York frequently find errors on their credit reports. With Chapter 13 bankruptcy, credit reports must show which accounts were included in repayment programs. Yet, these accounts are often misreported by creditors to the credit bureaus, which causes unnecessary credit damage.
New York Chapter 13 bankruptcy filers should also remember that, under the Fair Credit Reporting Act (FCRA), most items eventually expire and fall off credit reports. For example:
- The Chapter 13 bankruptcy itself remains on your credit report for seven years from your filing date. This means that, depending on how long your repayment period lasts, the bankruptcy should only stay on your credit reports for another two to four years.
- Accounts included in repayment programs that were current prior to the bankruptcy remain on credit reports for seven years after the filing date.
- Accounts that were delinquent before Chapter 13 repayment program inclusion fall off credit reports seven years from their original delinquency dates.
Because Chapter 13 repayment plans take so long to complete, it’s common for New York filers to need a loan or new credit before discharge. It is possible for consumers who are in the middle of Chapter 13 to get loan or credit approval. However, inaccuracies on credit reports make financing harder. For this reason, New York consumers who file Chapter 13 bankruptcies should keep careful tabs on their credit reports throughout and after the process.
How New York Chapter 13 Bankruptcy Filers Can Fix Credit Report Errors and Move on to Building Good Credit Scores
Chapter 13 bankruptcy filers in New York who find errors on their credit reports should contact Credit Repair Lawyers of America. Even if you have a great bankruptcy attorney, you need an experienced credit lawyer to clean up your credit reports. The good news is that the best credit repair lawyers are available through Credit Repair Lawyers of America – for FREE.
Don’t let bankruptcy errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Carl Schwartz at (646) 859-3045 or sending him a message through our contact page.