How does filing under chapter 13 affect a persons credit rating?
It may worsen it, at least temporarily. However, if most of a person’s debts are ultimately paid off under a Chapter 13 plan, that fact may be taken into account by credit reporting agencies. If very little is paid on most debts, the credit-rating effect of a Chapter 13 case may be similar to that of a Chapter 7 case. Currently the filing of a Chapter 13 case remains on your credit for seven years from the date you file your case. If you complete your case and pay back a 100% dividend to unsecured creditors, this information will be submitted to the credit reporting agencies by the Chapter 13 Trustee upon completion of your case.
It may improve it, in the long run. A person’s debts are ultimately discharged by completing a chapter 13 plan. A person who owes no debt improves his/her debt payment to income ratio upon which most lenders make their loan determinations. Top • Are the name of persons who file under Chapter 13 published? When a chapter 13 case is filed, it becomes a public record and the name of the debtor may be published by some credit reporting agencies. However, newspapers do not usually publish the names of persons who file under chapter 13 except in official legal newspapers not widely read by the public. (i.e. Detroit Legal News) Top • Is a person’s employer notified when he or she files under Chapter 13? In most cases, yes. Many courts require a debtor’s employer to make payments to the chapter 13 trustee on the debtor’s behalf. Also, the chapter 13 trustee may contact an employer to verify the debtor’s income. However, if there are compelling reasons for not informing an employer in a particu
It may worsen it, at least temporarily. However, if most of a person’s debts are ultimately paid off under a chapter 13 plan, that fact may be taken into account by credit reporting agencies. If very little is paid on most debts, the credit-rating effect of a chapter 13 case may be similar to that of a chapter 7 case.
Generally speaking, by the time someone decides to file for bankruptcy protection, their credit rating is already horrible. Filing a Chapter 13 may worsen it, at least temporarily. However, if most of a person’s debts are ultimately paid off under a Chapter 13 plan, that fact may be taken into account by credit reporting agencies. If very little is paid on most debts, the credit-rating effect of a Chapter 13 case may be similar to that of a Chapter 7 case. Under either scenario, most debtors will be able to reestablish credit after the bankruptcy is over. top 29. Are the names of persons who file under Chapter 13 published? When a Chapter 13 case is filed, it becomes a public record and the name of the Debtor may be published by some credit reporting agencies. However, newspapers usually do not publish the names of persons who file under Chapter 13. top 30. Is a person’s employer notified when he or she files under Chapter 13? In most cases, no. A Court may require a Debtor’s employer
