Reorganization

• Filing for Chapter 13 bankruptcy is the beginning of a years-long process to reorganize your debts. The first three to five years are spent paying off the debts the court has reorganized for you. The bankruptcy court determines how much of your income goes to debt repayment, and how much is yours. Any new debt must be approved by the court.
  
  

Discharge

• After the bankruptcy is discharged and the reorganization period is over, you still have another five to seven years in which the bankruptcy stays on your credit report. Because bankruptcy is considered such a black mark on your credit, getting lenders to give you money during this time will be difficult.
  
  

After Discharge

• While you can begin rebuilding your credit after your bankruptcy is discharged, doing so can be a challenge. Expect to use secured or high-interest-rate credit cards and to get less than optimal rates on other loans for a few years at least.