Stiberman’s Blog

Helping clients across Florida achieve financial freedom, since 1998.
Free Consultation
  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Paul B.starstarstarstarstar5.0
    I would like to share the amazing experience I have had with this Law firm. I was on the verge of loosing my house because I had not paid my property taxes. I looked for a Bankruptcy at Read More
    July 10, 2023logo
  • S.M.starstarstarstarstar5.0
    When I say this office was absolutely the best, I am not kidding! They have been absolutely phenomenal. Robert has been the best bankruptcy attorney. The whole team has always kept Read More
    April 20, 2023logo
  • Paula D.starstarstarstarstar5.0
    I was referred by a friend to this bankruptcy attorney. Mr. Stiberman and his staff was very courteous, knowledgeable and very caring towards my concerns. I am pleased with the outcom Read More
    April 18, 2023logo
  • R.P.starstarstarstarstar5.0
    The process was relatively easy, I would recommend Stiberman Law to anyone who finds themselves in need of a bankruptcy attorney.
    February 24, 2023logo
  • Jose N.starstarstarstarstar5.0
    I have to say that I have had a great experience with Stiberman Law regarding a bankruptcy and they have been very informative and supportive. They have been very helpful and always ans Read More
    January 20, 2023logo
  • L.L.starstarstarstarstar5.0
    Excellent service. Great bankruptcy attorney and staff. Always informed me of what to expect. My Chapter 13 bankruptcy was smooth and the process was easy thanks to Robert and the Read More
    July 20, 2022logo
  • Sam Sstarstarstarstarstar5.0
    Twelve years ago I was in need of legal representation stemming from the housing meltdown if 2008. Robert Stiberman and his staff handled the matter with complete professionalism and sp Read More
    October 19, 2022logo
  • K.D.starstarstarstarstar5.0
    I was looking for a bankruptcy attorney in Miami, and I found Mr. Stiberman. He and his office were efficient, and they guided me through every step of the process. I am appreciative of Read More
    September 16, 2022logo
  • Carmen C.starstarstarstarstar5.0
    I am so grateful for Stiberman Law, P.A. In 2019 my husband and were faced with a very difficult decision file for Bankruptcy, unfortunately we weren’t able to pay for our credit Read More
    October 26, 2022logo
  • N.M.starstarstarstarstar5.0
    Excellent work from this bankruptcy law firm! I was drowning in debt with my license suspended from a lawsuit I had and thought I would have to spend the rest of my life paying back deb Read More
    August 17, 2022logo
  • R.Z.starstarstarstarstar5.0
    The experience with this office has been great. No problems at all they have kept me straight to doing the right thing and feeling a breeze of peace and being debt free with my bankruptcy.
    August 30, 2022logo
  • F.starstarstarstarstar5.0
    Very happy with Robert and his team. Thanks to them we were able to save our home. Very helpful and knowledgeable in bankruptcy. Best attorney.
    July 28, 2022logo
  • E.R.starstarstarstarstar5.0
    I had a great experience, I just want thank Stiberman law and his team for a great experience also Ana for the help and explaining my case. Appreciate, thank you
    July 25, 2022logo
  • A.B.starstarstarstarstar5.0
    Very good office with my bankruptcy. They have been amazing through this hard process. Very happy with Robert and his staff they are very nice and professional. Thank you stiberman!
    July 23, 2022logo
  • W.J.starstarstarstarstar5.0
    Amazing work by Robert. They are really good with what they do, very attentive and knowledgeable. Customer service and professionalism are top, the lawyer has been great this whole t Read More
    June 25, 2022logo

Chapter 13 Bankruptcy and Your Credit Report: Understanding the Process and Rebuilding Your Credit

Are you struggling with debt and considering filing for Chapter 13 bankruptcy? If so, it’s essential to understand how it can impact your credit report. In this article, we’ll discuss the Chapter 13 process, how it affects your credit score, and provide tips for rebuilding your credit after bankruptcy.

The Chapter 13 Process

Filing the Petition

To begin the Chapter 13 process, you must file a Voluntary petition with the bankruptcy court in your jurisdiction. This step involves submitting detailed financial information, including income, expenses, and debts. An automatic stay goes into effect once you file your petition, preventing creditors from taking further action against you. Absent a court-approved extension, you must submit all required forms within fourteen days of filing to avoid dismissal of your case.

Making Your First Chapter 13 Plan Payment

Your first Chapter 13 plan payment is due within thirty days of filing your petition and every thirty days after that during your bankruptcy – three to five years.

Meeting of Creditors

After filing your petition, you’ll attend a meeting of creditors. During this meeting, the bankruptcy trustee assigned to your case will ask questions about your financial situation and your proposed repayment plan. Creditors may also attend and ask questions, but they rarely do.

Confirmation Hearing

Following the meeting of creditors, the bankruptcy court will hold a confirmation hearing. At this hearing, the judge will decide whether to approve or reject your proposed repayment plan. Your case may have numerous confirmation hearings, and you’ll always need to be current with your plan payments to avoid dismissal. If your Chapter 13 plan is approved, the court will issue an order confirming your Chapter 13 plan. You must comply with the Plan, including sending the required payments to the Chapter 13 trustee. The Trustee will distribute the funds to your creditors per the plan’s terms.

Impact on Your Credit Report

Initial Impact

Filing for Chapter 13 bankruptcy will immediately impact your credit report. The bankruptcy filing will be listed in the public records section, and your accounts will be updated to reflect the bankruptcy. This can significantly drop your credit score, as bankruptcy is considered a severe negative event.

Rebuilding Your Credit

Once your Chapter 13 bankruptcy is underway, you’ll have the opportunity to start rebuilding your credit. You can gradually improve your credit score by making your plan payments on time and demonstrating responsible financial behavior. Remember that the bankruptcy will remain on your credit report for seven years from the filing date.

Removing Chapter 13 Bankruptcy

After seven years, Chapter 13 bankruptcy will automatically be removed from your credit report. At this point, you can expect to see a significant improvement in your credit score, provided you’ve been managing your credit responsibly.

Tips for Improving Your Credit Score

Make Timely Payments

The most critical factor in rebuilding your credit after bankruptcy is making all your payments on time. This includes your Chapter 13 plan payments and any other credit obligations you have.

Maintain Low Credit Utilization

Another critical factor in improving your credit score is keeping your credit utilization low. This means using 30% of your credit limits.

Diversify Your Credit Portfolio

A mix of credit types, such as installment loans and revolving credit, can also help improve your credit score. Once you’ve established a positive payment history, consider diversifying your credit portfolio by responsibly taking on new credit products.

Frequently Asked Questions

  1. How long does Chapter 13 bankruptcy stay on my credit report?

Chapter 13 bankruptcy remains on your credit report for seven years from the filing date.

  1. Can I obtain new credit while in a Chapter 13 bankruptcy?

It’s possible to obtain new credit during a Chapter 13 bankruptcy, but it can be challenging. You may need to obtain permission from the bankruptcy trustee or court. Additionally, interest rates and fees may be higher due to your reduced credit score.

  1. What happens to my credit score after Chapter 13 bankruptcy is removed from my credit report?

Once the Chapter 13 bankruptcy is removed from your credit report, your credit score should improve significantly, provided you’ve managed your credit responsibly since filing.

  1. How can I monitor my credit report during and after Chapter 13 bankruptcy?

You’re entitled to a free credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) every 12 months. Regularly reviewing your credit report can help you identify any inaccuracies and track your progress in rebuilding your credit.

  1. Can I buy a home while in Chapter 13 bankruptcy or after it’s discharged?

Obtaining a mortgage while in Chapter 13 bankruptcy or shortly after it’s discharged can be challenging but not impossible. Lenders may require a waiting period after your bankruptcy discharge and will likely want to see evidence of responsible credit management during and after your bankruptcy.

In conclusion, understanding the impact of Chapter 13 bankruptcy on your credit report is essential when deciding whether to file. Following the tips in this article and staying committed to responsible financial behavior, you can rebuild your credit and work towards a more secure financial future.

Robert Stiberman is a bankruptcy attorney with extensive experience in Chapter 13 bankruptcy cases. He has represented numerous clients in bankruptcy cases and is well-versed in the requirements of the Chapter 13 trustees. With his knowledge and experience, Robert Stiberman can provide his clients with the guidance and representation they need to navigate bankruptcy successfully.

Written By:

Attorney Robert Stiberman

Robert is an experienced bankruptcy attorney adept at handling Chapter 7, 13, and 11 filings, with more than 15 years of experience in bankruptcy cases. Robert represents clients in both consumer and business bankruptcy ... Read More

Contact Stiberman Law Today!

Speaking to our law firm is always 100% confidential. Help is just a call away!.

Name(Required)
This field is for validation purposes and should be left unchanged.

Request A Free Consultation

Speaking to our law firm is always 100% confidential. We do our best to respond to inquiries in under 24 hours.

Name(Required)
This field is for validation purposes and should be left unchanged.
Image

Received!

We’ll get in touch as soon as possible.