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Member
Posts: 32
Registered: ‎02-06-2012
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I'm distraught after CH7 please help me!!!

[ Edited ]

I filed for Chapter 7 in Nov. 2011. I will be discharged later this month. I recently reaffirmed my car loan thru Honda Financial. My plan was to use my cards with zero balance in good standing to help rebuild my credit after the bk. Well all but ONE of my good cards were cancelled by the credit card companies. One in particular was a Gap Visa. I was really counting on that one because it was the only MAJOR credit card I had left. CS said once they verify you filed BK they cancel your cards no matter your balance or your good history with them. I was so disappointed I broke down crying!!!

 

I had good credit all my life! I'm almost 38! So making the decision to file BK was NOT an easy one. It took me a long time to decide but I really had no choice. My house and rental property were upside down in the mortgage, lots of credit card debt, equity loans etc. My primary property was forclosed on and I surrendered all my property in the BK. The bank has yet to foreclose on the rental because of the area it's in. At least that's what my attorney said. So I'm still responsible for the property even tho I included it in my BK.

 

Ok, so I'm confused and upset right now because I don't know where to turn. How will I ever rebuild my credit? The only card I have is a store credit card NOTHING else besides a debit card. I did try to read the posts on this site but it was overwhelming and I can't focus right now. I was already depressed pre-filing now it's worse.

 

Thanks in advance for any help you can offer me.

 

So if anyone has the time, can you PLEASE give me tips on what I can do to get things back on track.

Frequent Contributor
Posts: 466
Registered: ‎05-30-2008
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Re: I'm distraught after CH7 please help me!!!

There will be a ton of credit-cards available to you once you are discharged. My pre-BK credit-history was everything but good but I was able to obtain 3 new CCs the month I was discharged. Capital one was one of them. I applied for their secured card. This is agreat way to establish credit again because you can decide on your own if you want to increase your CL.

 

Keep in mind that your closed CCs are still going to benefit you. Although the available credit is gone, they will still age with all other accounts and stay on file for the next 10 years, keeping your average age of accounts up.

 

Now, if they had a $0 Balance when you filed, make sure they DON'T report "Included in BK" - because they weren't. You don't want to be penalized for something that is incorrect.

Member
Posts: 32
Registered: ‎02-06-2012
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Re: I'm distraught after CH7 please help me!!!

ok, so do I need to pull my credit report at this point and make sure everything is accurate? What about those goodwill letters I read about. Does that help after a ch7?

 

Thanks for responding!

Frequent Contributor
Posts: 466
Registered: ‎05-30-2008
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Re: I'm distraught after CH7 please help me!!!

I'd say you should wait a month post discharge, pull your 3 reports and make sure everything is accurate ($0 Balance on accounts IIB and no IIB-notation on accounts that had a $0 Balance when you filed). If not, you should dispute any inaccurate information.

 

I'm not sure if goodwill letters will have a high rate of success right after discharge. These are most effective after a couple of years...keep in mind that the lender just lost money due to your BK and they won't be motivated to "reward" you right after discharge. 

Member
Posts: 32
Registered: ‎02-06-2012
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Re: I'm distraught after CH7 please help me!!!

That's what I was thinking too about the goodwill letters. I only asked because I could have sworn I read on these forums where some people used them shortly after discharge to increase their credit score. Maybe I misunderstood.

Frequent Contributor
Posts: 466
Registered: ‎05-30-2008
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Re: I'm distraught after CH7 please help me!!!


DesperateCh7 wrote:

That's what I was thinking too about the goodwill letters. I only asked because I could have sworn I read on these forums where some people used them shortly after discharge to increase their credit score. Maybe I misunderstood.


Well, unlikely doesn't mean impossible.:smileywink:

 

You can certainly try your luck. Trying won't hurt your score.

Member
Posts: 32
Registered: ‎02-06-2012
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Re: I'm distraught after CH7 please help me!!!

lol, thanks!

Frequent Contributor
Posts: 466
Registered: ‎05-30-2008
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Re: I'm distraught after CH7 please help me!!!

You're welcome!

Moderator Emeritus
Posts: 4,470
Registered: ‎12-31-2008
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Re: I'm distraught after CH7 please help me!!!


DesperateCh7 wrote:

That's what I was thinking too about the goodwill letters. I only asked because I could have sworn I read on these forums where some people used them shortly after discharge to increase their credit score. Maybe I misunderstood.



Remember, too, that CH 13 discharge is several years after filing - wherease CH 7 discharge is a few months after filing.  And CH 13 does include repayment.  Some folks who have had success with GW's after a BK were those who had filed CH 13 - me included.  There may be folks who've had good luck GW'ing after a CH 7 - just don't want the issue to be too confusing.

 

Desperate, you'll be fine moving forward.  I know going through a BK can be highly emotionally charged.  Hanging around here is good therapy - there's lots of helpful folks who have been through it and offer terrific advice.

 

 

 

Just puttin' syrup on something, don't make it pancakes.
Member
Posts: 32
Registered: ‎02-06-2012
0

Re: I'm distraught after CH7 please help me!!!

Oh, I never realized that about the difference in discharge dates!

 

Thanks, I hope I can get my life back on track! I panicked for minute when I found out all but one of my cards were cancelled. Wish my attorney would have warned me or something, lol

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