@Anonymous wrote:
Bstone, I actually have not asked. I have an appointment to see my bankruptcy attorney this upcoming Monday. I'm in the exact same situation. I need to raise my score a bit to qualify for an FHA mortgage, but I cannot do so without a few revolving accounts. I'm going to see my attorney to see what my options are. I've been looking at the option of converting to a Chapter 7. I honestly am not sure of what to do.
Yeah we went over in your other thread why I don't think it's a good idea to convert to a 7 when you are 2 years into a 13 payment plan.
At the same time (quoting my attorney) the trustee is not your friend. Getting an unsecured CC approval isn't likely.
Keep us posted...
@Anonymous wrote:That's what I know. I almost feel as if I'm trapped in credit purgatory for the next few years. Scores are too low to do anything. I'm paying something on my debt, yet it almost feels like you are penalized for it. I have an associate who filed chapter 7 and got an auto loan/unsecured card a few weeks post discharge. This is someone who had over 30K in CC debt. I seriously had less than 4k in unsecured debt. My paralegal has told me that it is too early to pay off, as they typically won't discharge unsecured debt until 36 months in.
Welcome to my world!
I know EXACTLY how you feel!
That's why I vent like I do sometimes... because I want to know how exactly I can spend 4 years paying back over half my debt and get a discharge and in 2 years have $60k in credit... but someone who has pretty much my same income can file a BK7, burn everyone... and have over $120k of new credit... IN 18 MONTHS.
I'll be the first to say the system sucks... it's not fair... but lots of things in life aren't. Are you penalized for a Ch 13? Sure feels like it doesn't it? It's almost as if NOT paying back your creditors is looked upon more favorably! What a crock! I don't blame the individual though I blame the system... it's still too easy to file a Chapter 7.
That's how I feel about it... and if people don't like my opinion I don't care. I've still got my pride... and don't come home to a house full of stuff I haven't paid for like some people do. 
@TRC_WA wrote:
@Anonymous wrote:That's what I know. I almost feel as if I'm trapped in credit purgatory for the next few years. Scores are too low to do anything. I'm paying something on my debt, yet it almost feels like you are penalized for it. I have an associate who filed chapter 7 and got an auto loan/unsecured card a few weeks post discharge. This is someone who had over 30K in CC debt. I seriously had less than 4k in unsecured debt. My paralegal has told me that it is too early to pay off, as they typically won't discharge unsecured debt until 36 months in.
Welcome to my world!
I know EXACTLY how you feel!
That's why I vent like I do sometimes... because I want to know how exactly I can spend 4 years paying back over half my debt and get a discharge and in 2 years have $60k in credit... but someone who has pretty much my same income can file a BK7, burn everyone... and have over $120k of new credit... IN 18 MONTHS.
I'll be the first to say the system sucks... it's not fair... but lots of things in life aren't. Are you penalized for a Ch 13? Sure feels like it doesn't it? It's almost as if NOT paying back your creditors is looked upon more favorably! What a crock! I don't blame the individual though I blame the system... it's still too easy to file a Chapter 7.
That's how I feel about it... and if people don't like my opinion I don't care. I've still got my pride... and don't come home to a house full of stuff I haven't paid for like some people do.
I agree. I have an older person I know that used to cycle before the means test...and still does to a certain extent. File 7>>>discharge>>>rebuild>>>tons of unsecured credit>>>>max it out>>>file chapter 7 again. Nevermind the fact that, with Chapter 7, you are good in a few months. With Chapter 13, you pay a payment for 3 to 5 years. So, not only can you not rebuild, but you actually pay more out!!
I really wished I'd have filed a chapter 7 and just let my vehicle go. I could have bought something cash until I was back on my feet. Hell, with the "700 in 24 months" guide, I probably would have been gtg in about 12-18 months. Now I'm two years in. Can't pay it off, yet. Can't rebuild credit. Still making making monthly payments.
I had a divorce and job loss happen within 8 months of eachother. Bankruptcy was a way for me to regain my footing and start to get my life back in order financially. If I would have filed the 7, I probably would have been on easy street by now. It is beyind frustrating...
@Anonymous wrote:
I agree. I have an older person I know that used to cycle before the means test...and still does to a certain extent. File 7>>>discharge>>>rebuild>>>tons of unsecured credit>>>>max it out>>>file chapter 7 again. Nevermind the fact that, with Chapter 7, you are good in a few months. With Chapter 13, you pay a payment for 3 to 5 years. So, not only can you not rebuild, but you actually pay more out!!
I really wished I'd have filed a chapter 7 and just let my vehicle go. I could have bought something cash until I was back on my feet. Hell, with the "700 in 24 months" guide, I probably would have been gtg in about 12-18 months. Now I'm two years in. Can't pay it off, yet. Can't rebuild credit. Still making making monthly payments.
I had a divorce and job loss happen within 8 months of eachother. Bankruptcy was a way for me to regain my footing and start to get my life back in order financially. If I would have filed the 7, I probably would have been on easy street by now. It is beyind frustrating...
I understand your frustration.
The system is abused... much like welfare and other programs that give "free money." Not by everyone of course but anything like this is gonna have the freeloaders.
I can go on and on with the rant but I'd rather not... tired of talking about it.
Good luck.
