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Chapter 13 bankruptcy impact on credit in Massachusetts

One of the challenges for Massachusetts residents when considering bankruptcy is choosing from a variety of options available. There are several options to choose from that can bring about debt relief. One of the options is filing for Chapter 13 bankruptcy, which can allow someone in debt to pay off creditors and get his or her life back on track.

Personal finance expert Erica Sandberg offers advice for people who are going through the bankruptcy process. She states that after filing for Chapter 13 bankruptcy, one's credit score will be affected, but it can be repaired over time. It may take some time to pay off debts, but Chapter 13 offers flexibility for credit card and other forms of debt. Sandberg says that finding a new credit card after filing for bankruptcy comes down to an evaluation of affordability and credit rating. Fortunately, Sandberg says that credit ratings will go up naturally as the debt load decreases in size.

Chapter 13 bankruptcy offers an effective way for Massachusetts residents to set up a repayment plan. There are certain standards that need to be met to qualify for Chapter 13. Filing bankruptcy can help put someone on the path to getting rid of his or her debt. A plan can be made to fit every income.

Filing for bankruptcy doesn't need to be a scary process. With careful planning, it can lead to a very positive outcome. Being overwhelmed by financial burdens like credit card debt is difficult. Filing for Chapter 13 bankruptcy can help someone plan his or her future. It does affect credit scores, but the sooner debt is gone, the sooner a credit score can go up.

Source: FoxBusiness.com, "During Chapter 13 Bankruptcy, Secured Cards Tough to Get," Erica Sandberg, May 6th, 2014

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