Improve Your Credit Rating

Which Bankruptcy Is Better For Your Credit?

Edited by Bryan Keenan

In this short post you can see which bankruptcy might be better for your credit situation…

Chapter 7 is better than Chapter 13 and here is why. For most people who are looking to file bankruptcy the choice really comes down to filing a Chapter 7 bankruptcy or a chapter 13 bankruptcy. I believe that in most situations people are much happier with the benefits offered in a chapter 7 bankruptcy case.

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You Will Recover More Quickly From A Chapter 7 Bankruptcy

Most people are surprised that their credit score has actually increased 12 months after their Chapter 7 bankruptcy case is complete. Further, most people are unaware that if you have good payment history after your chapter 7 case, the Federal Housing Administration can qualify you for a home loan within 2 years of your bankruptcy case being completed. While you can also qualify for Federal Housing Administration loans while in your chapter 13 case, the reality of this is you are going to have a more difficult time getting financing while you have an active bankruptcy case, and in Chapter 13 you will have an active case for 3 to 5 years.

There is no question that filing a chapter 7 bankruptcy hurts your credit, but it is a static event every day you get further away from it the more likely you will be able to obtain new financing if you need.


Article references:
www.illinoisbankruptcyattorney.cc/7-reasons-why-chapter-7-is-better-than-chapter-13

About the author

Bryan Keenan

Attorney Keenan is a familiar face with the Bankruptcy Court Judges, trustees and practitioners in the state of Pennsylvania, and has handled thousands of consumer bankruptcy files. Attorney Keenan takes pride in keeping up with the constant changes to the local and national bankruptcy rules." Prior to becoming a lawyer he worked as a paralegal for ten years, and, therefore, he has worked in this field for the past 22 years.