How does a Chapter 13 bankruptcy affect your credit?

Answer 1

A chapter 13 hurts your credit because it is a form of bankruptcy. Immediatley after filing you will be lucky if your score in the mid-400's. It is a good idea to obtain a secured credit card from First Premier Bank or Bank of America and attempt to establish credit before your discharge in 3 to 4 years. I filled in 2004 and since have obtained secured credit and my score went from 459 to 620. You have to use credit in order to raise your score. If you sit and do nothing your score will remain in the pits until your discharge.

True, you have to open up some sort of starter credit card to get your scores back up. However, you cant until after the bankruptcy is discharged. Its against federal law. However, as soon as your bankruptcy discharges. Obtain your discharges records through your attorney or www.bankruptcy-records.us and send a copy of it to all three bureaus so they will clear your credit. Then get a credit card, wait about 3 to 4 months and your scores will continue to go up. Just remember to keep your balance on the credit card around 10 percent of your limit or it will bring your scores down.