How Can I Rebuild Credit After A Chapter 13?

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I filed a chapter 13 last year the initial filing in February and I believe my final approval came through in June. I heard you talking to somebody earlier about rebuilding your credit. How would go about something like that. You talked about credit cards and things of that nature.

Those are just like the real simple things that you can do. It doesn’t take a whole lot of effort so it’s more likely to be done consistently. You know whereas the former caller was talking about converting to a 7 and how to repair your credit after a 7’s gone through. Which is just, you know, essentially a reset to everything. It’s like he just got out of high school and you try to buy a car for the first time and realized you didn’t have any credit history. 13s are more of a slow steady progression of re building your credit you know if you just filed this recently you know this is really when you should be starting that process because you are automatically going to get a positive reporting each month just by making that chapter 13 payment.
Do you also have a mortgage or finance vehicle? If you do already have those things like a mortgage that you are paying on or finance vehicle it’s very similar to what we would do sort of after the fact in a chapter 7. You just make those payments and let those different types of debts continue to report positively to your bureaus and so you got the 13 payment report positively, you’ve got your vehicle or your house payment reporting positively and you know even if you are in a 13 and you don’t have a vehicle payment your 13 going to be either 3 to 5 years long. That’s a long time for everything in somebody’s life to stay consistent and steady. So you know what you can do there if you need to purchase a vehicle or something at some point it just to do an application to incur new debt. It’s a very simple worksheet and put a car loan on.

Do you already have like a mortgage payment or a vehicle payment?

Yes, I have both, I’ve vehicle payment which expires about 3 or 4 months before the chapter 13 does and I’ve got my mortgage.

Excellent. So your going to have two secured installment debts reporting positively to your bureaus. You are going to have the 13 plan payment which is a unsecured installment payment reporting positively to the bureaus and then you know if you want to sprinkle in there couple of credit cards that you just filtering one household expense through each one you should be really be in good shape. I mean once you are done with those 13 payments if you going to start doing something like you know may be you are purchasing a different house or another house for some investment then you really just need to get a little distance from the closing of the 13 to when you want to do that next larger financed item – maybe, you know 6 months or a year. It’s going to depend a little bit individually on the lenders and what it is you are trying to do with that score.

To continue reading the answer, see the text below or jump to another question using the links below:

  1. How Do You Know If You Qualify For A Bankruptcy?
  2. What Is Unsecured Debt?
  3. What Is The Process Of Bankruptcy Like?
  4. Can A Chapter 13 Be Converted To A Chapter 7?
  5. What Is the Process Of Bankruptcy Like – Part 2
  6. When Is The Best Time To File?
  7. How Can I Rebuild Credit After A Chapter 13?
  8. Can A Chapter 13 Be Amended?
  9. Can Filing Bankruptcy Prevent An Increase In Out Of Court Settlement?
  10. Is There Any Way To File Bankruptcy And Keep My Car Or My House?
  11. Will People From The Bankruptcy Court Send Someone To My House To Look At My Stuff?

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