Chapter 13 Bankruptcy, more like a payment plan, stays on your credit report for seven years. Bankruptcy, however, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Ever. If you lie to get a loan because your bankruptcy is very old, technically you have committed criminal fraud. That being said, a Chapter 13 filing may be preferred over Chapter 7 for consumers with assets they don't want to lose, and those willing to retire as much of their debts as possible under a less-pressured structure. Some debt balances may be partially liquidated, and the filer agrees to a monthly payment to the trustee for the remaining creditors.

Any bankruptcy is a serious mark against your credit record, but Chapter 13 filings may be perceived as slightly less serious than Chapter 7 filings since you are exhibiting an interest in paying off your debts. For specific bankruptcy information based on your city of residence, visit www.citylegalguide.com. Chapter 13 allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car that you might lose under Chapter 7. In Chapter 13, the court typically approves a repayment plan that allows you to pay off your debts during a period of three to five years.

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