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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have had an initial consultation w/one lawyer. If I remember

Resolved Question:

I have had an initial consultation w/one lawyer. If I remember right, I think he said I would have to file Chap 11? because of my income being a little higher anyways his assistant had told me that yes if I was to go thru w/the bankruptcy even in 20 years down the road it would still show that I filed for bankruptcy which would possibly mean I would pay a higher rate for a loan or credit card. How can I be sure that what you advised me of is in fact the truth of the matter? I do not mean to sound disrespectful but please understand I am holding on to what good credit I do have hopefully,
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

Thank you for your new question.

A bankruptcy may remain on a credit report for 10 years under the Fair Credit Reporting Act.

I am not certain why you would file a Chapter 11. A Chapter 11 is a reorganization for a business.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

I would be happy to tell you what the exemptions are for your state if you let me know what state you reside in
Customer: replied 5 years ago.
Ok, and I did have it wrong cause it was Chap 13 he advised to file. So that would remain on my credit report for 10 years also? Would it change my credit rating and it a negative way? And are there any other options in place of filing for bankruptcy? Or is just going w/extreme basics, no frills just pay my bills as I go the only other way?
Expert:  Ellen replied 5 years ago.
Yes a Chapter 13 would remain on your credit report for 10 years from the date of discharge. A Chapter 13 plan may last up to 5 years. A Chapter 7 bankruptcy is only 4 months and may be used to rehabilitate credit as it discharges most unsecured debt.

Edited by WebLaw on 2/5/2011 at 7:38 PM EST
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