How will filing a chapter 13 bankruptcy impact my credit and new purchases?

You keep everything in a Chapter 13. The Trustee is not a lidquidating trustee as in a Chapter 7. You will be able to get credit again after your bankruptcy discharge is entered. Depending upon your circumstances, it might be much easier after the discharge than it is right now. Borrowing money while in the Chapter 13 normally requires court approval, say, to buy a house. See an attorney for details. It is not easy to complete a Chapter 13, but a discharge is a very valuable thing and at least you know you are reorganizing under the protection of the Courts.

Bankruptcy may not be right for you. There are informal ways to resolve the debt without bankruptcy, which could be cheaper, faster, and have less negative impact on your credit scores. This does not involve debt consolidation or payment modification. Bankruptcy will make it very difficult to get a new apartment at least in the short-term. Use the "Find a Lawyer" feature to connect with a consumer defense attorney. Many will offer free initial consultation.

If you are contemplating a chapter 13 bankruptcy then your credit score is already low or will be soon based on your diminished ability of being able to pay your bills in a timely manner. Filing a chapter 13 will lower your score even further, but not as much as most people think. Renting an apartment should not be a problem, but if you have a bad credit score you will more than likely be asked to put down a larger deposit than someone with a good credit score. As to new purchases, you are not allowed to incur debt while you are in a chapter 13 bankruptcy without court permission. This does not apply to getting a new apartment, but it does apply to buying a new car, buying a house or acquiring a credit card. Normally you are allowed to keep and pay for a car in a bankruptcy provided that it is not a brand new luxury car. Some Chapter 13 Trustees have a problem with debtors having and paying for expensive cars because they are not reasonable and necessary to rehabilitate your credit. Keeping your apartment is a given as you need somewhere to live. Keeping your credit card will not be allowed as you have to list ALL your creditors in the bankruptcy. Once the credit card company gets notice of your bankruptcy they will close the account. I would suggest you speak with an experienced bankruptcy attorney about your options under chapter 13 and chapter 7. Most bankruptcy attorneys' initial consultation is free so the only thing you have to lose is a little bit of your time and gas money. Good luck!

You are making some unwarranted assumptions. It is up to creditors to decide whether to continue to extend credit to you after you file any form of bankruptcy. In any event, you are prohibited from obtaining new credit while in Chapter 13. If your problem is that you are struggling to pay your bills, a Chapter 13 would be an inappropriate choice. I generally file Chapter 13 to resolve mortgage arrearages, tax debts or to prevent the liquidation of assets not covered by a state exemption. More info at the links below. Hope this perspective helps!

Very often, creditors and landlords will ask if you have ever filed for bankruptcy. If you answer that you have filed, it may have some bearing on their decision of whether to extend credit to you, or to lease to you, and on what terms.