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thejuls

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I filed Chapter 13 Bankruptcy to pay off bills and improving credit score; true or false?
I just wanted to know if I did the right thing about a year ago?

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Bankruptcy is a desperate measure designed to help you out of extreme circumstances. It's far from painless, because creditors don't want people to take it lightly. What bankruptcy ISN'T is a way to "wipe the slate clean" and start over. Bankruptcy absolutely DESTROYS your credit. So why would anyone do it? Bankruptcy can sometimes help you save your home by stopping foreclosure proceedings and allowing you to take a few years to make up your missing mortgage payments. It can also wipe out a civil judgment, which could be extremely useful if the judgment is so large you couldn't reasonably hope to pay it off. 
I think it's absolutely immoral how bankruptcy attorneys encourage people to ruin their credit for stupid reasons. You can have dozens of derogatory remarks on your report and it won't do as much long-term damage as a bankruptcy.  Collectors calling you constantly? So what? File bankruptcy, which is a public record, and you'll get a whole new crop of loan sharks and scammers calling. 

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Why ask now, since you can't change what happened a year ago?  A Chapter 13 is also known as 'the Wage-Earner's Repayment Plan' and the derogatory remark on your credit from doing this will vanish in 7 years, whereas a Chapter 7 kills credit for ten years.  Technically, one could say that a Chapter 13 is the better of the two alternatives since it shows that,although you may not have the resources to pay your debts in full as originally agreed, you were still able to make some payment on them.  Partial payment is far better than just walking away.  This is a judgement call you made.

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