Chapter 13 or settlement
Date: Mon, 11/24/2008 - 14:47
In some ways, Chapter 13 is similiar (in my mind) to settlement except that you are put on a payment plan for 3-5 years instead of lump sum payments.
As far as I know, Chapter 13 bankruptcy stays in your credit rep
As far as I know, Chapter 13 bankruptcy stays in your credit report for 7 years.
In case of debt settlement, your score starts improving once your debts get cleared up.
As far as I know, cost attached with debt settlement is lesser than that of Bankruptcy 13. In addition, negative effect of Debt settlement on both credit report and credit score is much less than that of chapter 13 bankruptcy.
Please correct me if I'm wrong.
No one can tell you what is going to happen to your credit score
No one can tell you what is going to happen to your credit score. One thing about a chapter 13 is that even if you pay off your debts in 3-5. The Chapter 13 will still be on your report for 7 years. You could go a debt management program and still have a little restructuring with your budget and once you are through with the dmp it would not be reporting on your credit and you might have a higher score than when you started because your debts are paid off. Just depends if you can afford the payment on the program. In regards to your credit score though. It depends on where you are when you start either of the programs.
