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New Member
Posts: 3
Registered: ‎02-14-2017
0

Interested in filing need some advice.

Hi all,

I have been a reader of these forums for many years and can say I have gained some really good info. Sadly I find myself posting here because I'm in a bind and need some advice.

Background info:

At 17 I was approved for a Jc penny store card for $3500. Maxed out within 2 months. Discovered I could use it at cvs for gift cards. Never used it at JC penny actually.

Also was approved for $500 on a capital one card.

Lied on both applications saying I was 18 yet I was really 17. In high school had a part time job that paid for my car insurance and gas lol.

As you can imagine bad news collections before I even graduated. The path contained for a few years and ended up cleaning my act up in 2012 and had a high score across the board of 680 I believe.

Opened and closed 2 car loans and have about 2 dozen cards at this point all with low limits and high balances.

Present day I am 25 and have the following debt:

Collections: $5000
Revolving card balances: $6000
Auto loan that was charged off and then totaled: $9800 (cap one willing to settle for $3200)
And probably another $2000 in other random debts

4-6 darogatory marks
20-30 inquiries

I currently have 4-5 cards in good standing (paid on time) but almost maxed out.

I also have a lease with Lexus financial in food standings. Purposely did a longer lease in 2015 in case I did file.

I just feel that I can't get myself out of this hole. Every month I'm left with about $1300 to save which is not too much not to mention I need to live eat go out etc. making $57k a year.


What to do? I see everyone has such success after filing. And I don't doubt that I won't, it's just hard to see my self filing. I want to buy an apartment but can't with the current state of my credit. Would love one credit card because I currently use and pay about $1300 of that savings on one single card now. So one credit card would be great!

Any advice would be helpful or any recommendations as well. I am in northern New Jersey.

Thanks guys!
Regular Contributor
Posts: 155
Registered: ‎11-04-2016
0

Re: Interested in filing need some advice.

If you pay your bills and have $1300 left, you probably don't need to file IMO.  You just need to use that money to pay down your debts.



BK discharged 12/28/16, as of 3/5/17 EQ691 TU664 EX670
Valued Contributor
Posts: 1,967
Registered: ‎06-21-2012
0

Re: Interested in filing need some advice.

You don't have that much debt, you seem to be looking for an easy way to get rid of your debt and possibly end up in the same situation down the road.

BK is nuclear last resort. If you have "extra" money then you need to be investing into your debt, and seek free counseling on how to budget and get your finances in order.

Good luck
Learning from my past and rebuilding..

BK discharged 1/10/17
scores: EQ 649 | TU 611 | EX 657

Cap1 3K

Valued Member
Posts: 44
Registered: ‎09-30-2016

Re: Interested in filing need some advice.

The first thing to do here is create a budget and determine how much money you have left over after all your necesdary expenses are accounted for. Determine if this can be used to pay down your debt.

As previously stated, you dont have an excessive amount of debt, given your income.

More importantly, I am concerned about your focus on having a credit card and buying a home, as opposed to preventing indebtedness. You need to think carefully about how you got here and what needs to change in order to prevent this from happening again.

Consider your other options like settlement, 401k loans, credit counseling, etc.

If you choose to file, you will be prevented from buying a home for a minimum of 2 years.
Frequent Contributor
Posts: 287
Registered: ‎09-08-2007
0

Re: Interested in filing need some advice.

There is a financial criteria you must meet to even file. Check that out first to see if you are even able to.

4/25/11 FICO: EQ 761....EX 770.....TU 744
3/6/2011 FICO: EQ 710... EX 718... TU 710
09/09 FICO: EQ: 525
Community Leader
Senior Contributor
Posts: 5,067
Registered: ‎07-12-2012
0

Re: Interested in filing need some advice.

I think before filing you should take a long hard look at your budget. It sounds like there may be places to cut from. Also, stop using your credit cards all together, use cash or debit. It sounds like you can dig your way out but it won't be easy. Good luck!

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
731 EQ FICO 02/2017
738 TU FICO 02/2017
731 EX FICO 02/2017
$20k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $6.6k Cap1 Quicksilver | $10k Amazon Store | $14k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa
Regular Contributor
Posts: 205
Registered: ‎09-30-2016
0

Re: Interested in filing need some advice.


Isosunrise7 wrote:
Hi all,

I have been a reader of these forums for many years and can say I have gained some really good info. Sadly I find myself posting here because I'm in a bind and need some advice.

Background info:

At 17 I was approved for a Jc penny store card for $3500. Maxed out within 2 months. Discovered I could use it at cvs for gift cards. Never used it at JC penny actually.

Also was approved for $500 on a capital one card.

Lied on both applications saying I was 18 yet I was really 17. In high school had a part time job that paid for my car insurance and gas lol.

As you can imagine bad news collections before I even graduated. The path contained for a few years and ended up cleaning my act up in 2012 and had a high score across the board of 680 I believe.

Opened and closed 2 car loans and have about 2 dozen cards at this point all with low limits and high balances.

Present day I am 25 and have the following debt:

Collections: $5000
Revolving card balances: $6000
Auto loan that was charged off and then totaled: $9800 (cap one willing to settle for $3200)
And probably another $2000 in other random debts

4-6 darogatory marks
20-30 inquiries

I currently have 4-5 cards in good standing (paid on time) but almost maxed out.

I also have a lease with Lexus financial in food standings. Purposely did a longer lease in 2015 in case I did file.

I just feel that I can't get myself out of this hole. Every month I'm left with about $1300 to save which is not too much not to mention I need to live eat go out etc. making $57k a year.


What to do? I see everyone has such success after filing. And I don't doubt that I won't, it's just hard to see my self filing. I want to buy an apartment but can't with the current state of my credit. Would love one credit card because I currently use and pay about $1300 of that savings on one single card now. So one credit card would be great!

Any advice would be helpful or any recommendations as well. I am in northern New Jersey.

Thanks guys!

Live, go out, eat.  Live and eat should be one category.  You can eat beans and rice or ramen if you have to; or make spaghetti LOL.  LOTS of ways to cut down on eat budget!  The go out?  Nope.  Cut that down too until you are out of this hole.  I am with the others:  Sounds like you just need to budget big time, live beneath your means for a while and get out like that.  I wouldnt be looking for that easy fix.  If all this time you have continued to charge up instead of reining it in, there might be a bigger issue here.  I'd address that as well.

In second year post 13 DC (12-28-15)
Entered garden 10-3-16 App'd for mortgage January 14

Current Scores: TU670 EQ684 EX693 Updated: Feb 22, 2017
Goal: 700's across the board! My FICO 9's are already all over 700 and my mid-range mtg score is 701! Yay me!
Frequent Contributor
Posts: 399
Registered: ‎06-22-2016
0

Re: Interested in filing need some advice.

Have you thought about debt management vs bk? It's def a learning curv as well and is helpful. It will basically work on your best on your open CCs that aren't in collections. They will work wih the creditor and get your APR lower so you're actually paying it off vs interest. They can help set up monthly amounts for the accounts in collections, maybe even help you with the SIF and Cap One. I would contact a NON PROFIT debt consolidation company. Working in collections as long as I have, Debt Reduction Services is THE BEST one I've dealt with. They are the least amount in fees ( which aren't much) and will actually help you. Stay awa from Money Management, CCCS, Or Consumer Credit Counseling.. they are the absolute worst.

Ch7 BK filed 7/5/16, DC 10/12/16
Community Leader
Super Contributor
Posts: 8,610
Registered: ‎05-25-2015

Re: Interested in filing need some advice.

First of all, I commend you for posting your issues/problems here in the forum. A great first step to recovery. Smiley Happy Welcome to the forum!

 

Secondly, I agree with other posters that bankruptcy should probably not even be on the table. What should be on the table is a good tight budget that includes regular savings and paying down your bills.

 

Priortize your needs vs your wants and only take care of your needs. It is a really hard lesson to learn, but it will serve you well. I spent five years in Chapter 13 purgatory where I budgeted how many tanks of gas I would buy per month. (Just an example, but a true one.) What I learned was discipline and training myself to needs vs wants and it was really tough. 

 

The outcome is that now I have amazing credit, but no "itch" to buy anything unless it is a 'need." Now I have the room in my budget to buy something that is totally a "want" and it doesn't effect my long or short term goals.

 

Step One you have already done! Kudos to you!

Step Two is to make that budget and stick to it. If you stumble though, don't beat yourself up. Just start again.

Step Three is keep on working on the problem.

 

If you need us, we are here for you. Nothing I posted is "the only way." Just my thoughts and experiences in hopes they might trigger your own plan. Good luck!


Daily Drivers: Penfed Platinum Rewards; NFCU GoRewards; Discover; NASA Platinum Cash Rewards
Regular Contributor
Posts: 205
Registered: ‎09-30-2016
0

Re: Interested in filing need some advice.


Musiclover wrote:

First of all, I commend you for posting your issues/problems here in the forum. A great first step to recovery. Smiley Happy Welcome to the forum!

 

Secondly, I agree with other posters that bankruptcy should probably not even be on the table. What should be on the table is a good tight budget that includes regular savings and paying down your bills.

 

Priortize your needs vs your wants and only take care of your needs. It is a really hard lesson to learn, but it will serve you well. I spent five years in Chapter 13 purgatory where I budgeted how many tanks of gas I would buy per month. (Just an example, but a true one.) What I learned was discipline and training myself to needs vs wants and it was really tough. 

 

The outcome is that now I have amazing credit, but no "itch" to buy anything unless it is a 'need." Now I have the room in my budget to buy something that is totally a "want" and it doesn't effect my long or short term goals.

 

Step One you have already done! Kudos to you!

Step Two is to make that budget and stick to it. If you stumble though, don't beat yourself up. Just start again.

Step Three is keep on working on the problem.

 

If you need us, we are here for you. Nothing I posted is "the only way." Just my thoughts and experiences in hopes they might trigger your own plan. Good luck!


I agree with this 100000000000000000000000000000000000%.  I too was in Ch 13 for 5 years, actually 4, paid off early, but I REALLY had to determine need vs want and now almost 2 years later those habits are still with me!  I still have a hard time 'splurging' even though a splurge to me is a common daily occurance for many.  If I had known what I found out after BR (as it pertains to student loans), I MIGHT have been able to avoid 13 altogether.  I dont know that for certain, nor do I know if I'd have the 'life' I have now had I not gone through those trials for the first couple of years of the BR.  Anyway, just dont pull the trigger until you absolutely know you have to; consult with an atty.  Thats what I did at first.

In second year post 13 DC (12-28-15)
Entered garden 10-3-16 App'd for mortgage January 14

Current Scores: TU670 EQ684 EX693 Updated: Feb 22, 2017
Goal: 700's across the board! My FICO 9's are already all over 700 and my mid-range mtg score is 701! Yay me!

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