Question

Paula filed for Chapter 7 bankruptcy when she was 25 years old. How old will she be when the bankruptcy is removed from her credit report?

Answer 1

Answer:

Paula's age when the bankruptcy removed from her credit report=35years

Step-by-step explanation:

To solve this problem it is necessary to know about Chapter 7 bankruptcy

Chapter 7 bankruptcy

If a person has taken loan and he is not able to pay loan that time he can file Chapter 7 bankruptcy.  It can erase a part of his debt. Chapter 7 bankruptcy is an option for debtor whose income is not very high. In Chapter 7 bankruptcy trustee sells some of the nonexempt assets of debtor and used it to pay creditors according to provision mention in the bankruptcy code.

It takes 10 years to remove chapter 7  bankruptcy from the credit report of debtors from the filing date.

Let Paula's age be x at the time when the bankruptcy removed from her credit report

when Paula filed for chapter 7 bankruptcy, her age was=25 year

It takes 10 years to remove chapter 7 bankruptcy from the credit report of debtors from the filing date.

Therefore Paula's age when the bankruptcy removed from her credit report=Paula's age when she filed chapter 7 Bankruptcy+ time taken to remove bankruptcy from her credit report

x= 25years+10years

x=35years

Paula's age when the bankruptcy removed from her credit report=35years

Answer 2

She will be 35, because Chapter 7 bankruptcies stay for ten years.