Virginia Bankruptcy Law (VA)
Using Virginia law to enhance credit reports after filing Chapter 7 and Chapter 13
The first appearance of an adverse entry on credit report potentially occurs the day the petition is filed. According to federal law regulating credit reporting agencies (the Fair Credit Reporting Act), a Virginia bankruptcy law filing remains on a credit report for up to ten years after the date of final resolution. So in effect, if a Chapter 13 cases lasts for 5 years, then the dread word - bankruptcy - appears on each debtors report for up to 15 years. Oddly, by making payments through the plan, the penalty period is extended with debtors who participate in Chapter 13 reporting equal financial discrimination as if making no payments under Chapter 7. Most creditors claim the benefit of partial payment outweighs discharge, but this statement is simply not true according to debtors.
Success is within reach for all people who choose to file. many people report substantial improvements in credit scores within as little as two years after filing. This favorable development results from careful planning, and using secured installment loans to quickly rebuild credit. For example, a small certificate of deposit (as little as $250) is used to obtain a monthly installment note from a bank. Be sure to verify the bank reports monthly payment status, and make payments early. Credit reporting agencies give more weight to prompt payment of traditional installment loans through banks than typical credit cards.