Chapter 13 Does Effect After Filing Bankruptcy

Despite the persistent denials credit card companies, credit report analysts do not necessarily distinguish between Chapter 7 liquidations cases and Chapter 13 repayment plans. In practice, the effect of the dread term "filed bankruptcy on ..." has an equally odious impact upon credit availability. Nevertheless, after filing, late payment reporting should stop, which by itself, is responsible for an almost immediate course of recovery.

After filing, the worst effect is over, and steady payment histories overcome past history in as little as 18 months. Based on previous poor credit and no loan availability before filing, many debtors enjoy new options for additional loans fairly quickly. Lenders loath to accept bankruptcy, but once over, seem inescapably attracted to new potential customers.