Question

Filing Chapter 13 allows you to maintain a sound credit rating because

a. you stand free and clear of debt.
b. your possessions are used to pay your credit obligations.
C. you still fulfill your credit obligations.
d. none of the above.

Answer 1

C. you still fulfill your credit obligations.

Step-by-step explanation:

Under Chapter 13, your debts are reorganized but you still pay them back. Paying your debts later and after getting a court ordered deal is not the best possible scenario, but it is much better than not paying them back at all or simply liquidating assets and see what can be paid or not (Chapter 7).