How does filing under chapter 13 affect a person’s credit rating?

It may worsen it, at least temporarily. However, if most of a person’s debts are ultimately paid off under a chapter 13 plan, that fact may be taken into account by credit reporting agencies. If very little is paid of most debts, the credit-rating effect of a chapter 13 case may be similar to that of a chapter 7 case. In Texas, there is program of credit rehabilitation which has helped debtors who have successfully completed high percentage plans to re-establish credit. Normally, a chapter 13 will appear on one’s credit report for seven (7) years, while the chapter 7 will appear for ten (10) years.