 |
| |
|
|
|
|
Ask Susan Responses
| |
Bankruptcy: Chapter 7/13 |
|
| |
More Ask Susan |
|
| |
| |
I filed bankruptcy more than seven years ago. I just ordered and received my credit reports from Experian, TransUnion, and Equifax. My reports show a status of DISCHARGED. My question is since it's been more than seven years how can I get my credit history to be more favorable. -Virginia |
|
| |
|
Dear Virginia,
A Chapter 13 bankruptcy stays on your report for seven years. If you filed for Chapter 13, the notation should be removed. To correct this error, you can file dispute forms with the credit reporting agencies. You should have received the forms along with your reports.
If you filed for Chapter 7 bankruptcy, the notation stays on your credit report for up to ten years. In this case, you’ll have to wait.
Either way, to improve your credit history, keep paying those bills on time and as agreed.
The Advice Team
|
|
| |
| |
I filed for Chapter 7 nine years ago in April which was subsequently discharged in August. When does to ten year period expire, from filing or discharge date?
Please help! -Jay
|
|
| |
|
Jay,
A Chapter 7 bankruptcy notation will remain on your report for 10 years, starting from the filing date. A Chapter 13 notation would remain for seven years from the filing date.
Hope this helps,
The Advice Team |
|
| |
| |
We are currently current on all financial obligations but find our monthly debt exceeds our monthly income. In simple terms could you explain the difference between a Chapter 7 and Chapter 13 bankruptcy? How will it affect our house, furniture, cars (the only assets we now have)? Help! I'm feeling hopeless! -Frannie |
|
| |
|
Dear Frannie,
You are not alone and you will find a solution. Our nonprofit organization counsels thousands of people in your situation each month. I recommend that you visit with one of our trained credit counselors. Credit counselors are not attorneys, but they can help determine if bankruptcy is truly necessary. With that being said, I will try to answer to your questions to the best of my ability.
Chapter 7 bankruptcy is designed for debtors in financial difficulty that do not have the ability to pay their existing debts. A trustee takes possession of all your property but you may claim certain property as exempt from seizure under governing law. The trustee then liquidates your non-exempt property to pay your creditors according to priorities of the Bankruptcy Code. The purpose of filing Chapter 7 is to obtain discharge of your existing debts, however some debts are not dischargeable under the law.
A Chapter 13 is designed for individuals with regular income who are temporarily unable to pay their debts but would like to pay them in installments over a period of time. You file a plan with the court to repay your creditors all or part of the money you owe them, using your future earnings. The court must approve your repayment plan before it can take effect. Under Chapter 13, unlike Chapter 7, you may keep your property, both exempt and non-exempt, as long as you continue to make payments under the plan. After completion of payments under your plan, your debts are discharged except alimony and support payments and long term secured obligations.
Best of luck with your decision,
The Advice Team
|
|
| |
| |
We are one payment away from ending our 49 month plan with Chapter 13 bankruptcy. However, I was just informed that we were to have this paid off 4 months ago. While the motion to dismiss our case has not been issued and they have told us that if we make our final payment by the end of this month they we will be okay. We have been paying $500 a month for 49 months and are 1 payment away from having it paid off. What would a dismissal mean at this point of the bankruptcy? Our creditors should have been paid by this point. -Andy |
|
| |
|
Dear Andy,
The purpose of a Chapter 13 bankruptcy is to restructure your debts. It sounds like you have been diligent about making your payments on time and as agreed. If you have paid off your creditors through Chapter 13, the creditors who were included in the plan can not ask you to pay any more towards the debt. Otherwise, why would you have filed in the first place?!
For further information or clarification, you will need to check with your attorney or the bankruptcy trustee.
The Advice Team
|
|
|
|
|
|
