1 year, 6 months ago
via credit-qna.com
What happens to my credit if I file bankruptcy?
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M$1 Answer
Bankruptcies can remain in your credit history for 10 years, however it can remain as part of your public record for much longer. There are four types of bankruptcies that can be filed. Some may be only filed by certain groups of people. Chapter 7 is usually they type that is filed by most individuals, while most businesses file chapter 11. Individuals are allowed to file chapter 11, however this is not recommended due to its complexity. In a chapter 7 bankruptcy filing all non-exempt property is sold off and the proceeds are used to pay creditors. Whatever is left outstanding after this type of filing is usually discharged.
Chapter 11 is a more complex filing, however the debtor is allowed to keep possession of their assets and workout a new payment plan and reorganization plan with creditors. Chapter 13 works the same way as chapter 11, but is mostly for individuals. Chapter 12 is strictly for those in the farming industry. Some creditors will extend credit to you soon after filing bankruptcy, while most others may not.
Chapter 11 is a more complex filing, however the debtor is allowed to keep possession of their assets and workout a new payment plan and reorganization plan with creditors. Chapter 13 works the same way as chapter 11, but is mostly for individuals. Chapter 12 is strictly for those in the farming industry. Some creditors will extend credit to you soon after filing bankruptcy, while most others may not.
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