Current Bankruptcy News


Posted by Jeffrey Butwinick | Feb 15, 2023 | 0 Comments

Bankruptcy is a legal process that helps people find relief when they fall behind on payments and become overwhelmed by debt. The decision to file for bankruptcy can be difficult to make, but bankruptcy can be the best way to achieve a fresh financial start in many cases.

When you initiate bankruptcy proceedings, you can file under several different “chapters.” A Chapter 13 bankruptcy allows debtors to make affordable payments over a fixed period in exchange for having most of their debts wiped clean.  Chapter 13 payment plans typically last three to five years. If you have filed for Chapter 13 or are thinking about filing soon, you're probably curious about what you can do during that time to rebuild your credit score.

How Long Does Bankruptcy Stay On Your Credit Report?

Many people are hesitant to file for bankruptcy when they learn that bankruptcy can remain on their credit reports for up to 10 years. However, you should know that this 10-year rule only applies to chapter 7 bankruptcy cases.  When you under chapter the 13, bankruptcy only stays on your credit report for up to seven years after filing. For example, if you have a five-year repayment plan, the bankruptcy will only remain on your credit report for two years after you have completed the plan.

Best Practices for Rebuilding Your Credit During Chapter 13

Here are some steps you can take to begin rebuilding your credit while you are in the process of completing a Chapter 13 bankruptcy plan:

  • Open a “credit builder” card or loan to establish a consistent payment history
  • Ask a family member or close friend to add your name to their old credit card
  • Ask a family member or close friend to co-sign any loans you take out
  • Review your credit report for inaccuracies and then dispute them as needed

Is It Possible to Qualify for Consumer Debt While in a Pending Chapter 13?

Yes. Credit cards, vehicle loans, and even residential mortgage loans can be obtained during a chapter 13 case.

Want more info? Please contact me at your earliest convenience to schedule a free consultation to discuss the specifics of your case.
You can also self-schedule an appointment by going here:

Jeffrey H. Butwinick, Esq.
7800 Metro Parkway
Suite 300
Bloomington, MN 55425
[email protected]
T. 651-210-5055
F. 651-560-7135

About the Author

Jeffrey Butwinick

Practice Areas Jeff specializes in providing legal counsel to small business clients, and assisting clients in their personal and/or business bankruptcy petitions. He also helps people who have been subjected to illegal collection efforts. Current Practice Areas: Personal bankruptcy, small b...


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