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To file for Chapter 13 you first have to petition the courts. But, even before the courts will accept your petition to file for chapter 13 bankruptcy, they will require you get debt management counseling and successfully complete a credit counseling program from a government approved agency. They will also determine if you’re eligible to file.

When you file the petition, the bankruptcy clerk will let all of your debtors know of your status. This will automatically stop most collection actions against you. They will receive notices of chapter 13 bankruptcy explained to them.

This means that your debtors can not initiate lawsuits against you, harass you dunning phone calls, garnish your paycheck, or attempt any other type of debt collection. When you file, the bankruptcy clerk will let all of your debtors know of your status.

The credit score reflected in your credit report varies depending on how long it’s been since your bankruptcy filing. As you might expect, the further you get away from your bankruptcy filing, the less effect it has on your credit score. For example, if you filed Chapter 7 just over nine years ago, it’s going to have a much less effect on your credit score than if you had made the filing 6 months ago.

If you recently filed, however, your chapter 7 bankruptcy credit report won’t look inviting at all. You’ll find all kinds of bad information from your creditors about your late payments, missing payments, and defaults. Depending on what type of bankruptcy you filed you will have a long road towards rebuilding your credit and getting your life back in order.