Please help me understand this issue...bankruptcy vs. credit counseling.

[Turbo-Bob]

So here is my two cents...

I filed for BK back in 2005...  I  was divorced, had debt and bottom line it just was not pretty.

After I filed and the BK was official, my main concern was correcting any bad credit that showed on my reports. I ran every agency and verified what I could immediately dispute. Basically go for  the low hanging fruit.

Then go for the incorrect items. This works on some things and not others. The reason it works is some lenders don't respond to the inquery and some do. Do your research figure out who does and who doesn't. Choose your battles.. AMEX will always answer back and they will forever hold BK against you.. Others will let it go knowing that you included them in BK.

Above all be honest and follow the procedures. Trickery will get you nowhere. After all you filed BK and know what the circumstnaces would be 7 years for 13 and 10 for 7...

Don't be cute.. You will get credit offers and I strongley suggest you look at them for what they are. There are many companies willing to give you credit, but it's always at a price. Yearly fees, mebr fees etc... You will also find that reputable companies will give you great deals. After 5 yrs I was able to finace a car at 2.9%.. On the other hand I got a Major card with a major bank and got 29%. You should expect a varying result.

The other tip is to err on the cautious side.For instance, when looking to buy a car. Go for the car that will suiot you needs. It may not be what you want and the terms may be ugly, but position yourself to get out of the car in 3 to 4 years. then buy something a bit more expensive applying the same rules.. On time payments no matter what.

BK is a difficult choice and even more difficult to recover from... The only way to overcome BK is to be diligent and learn from your past mistakes. It is a very long road and sometimes seems unfair, but you have to remember, you set off a nuclear bomb on your credit... YOU NEED to be responsible enough to proove to lenders you can handle debt.

Bottom line.. BK does offer a seond chance.. You just better be willing to work you A** off to take advantage of it!

[drboxing]

Finished chpt 13 Plan, week I got my discharge went to car dealer, financed vehicle w capt 1 12%, wife financed a vehicle the same week. She just got approved a visa $3000 limit w CU she financed car with. Had no problems getting loans or visa

[danny4l]

Thank you for the replies.  I have learned some valuable information.

StartingOver made the obvious easy for me to understand.  I understand that I'm in a DMP because of credit card debt and I can see how a lender would look at that and not want to issue me a new credit card.  I guess I know that I will be responsible with the new credit because I want to build my credit but I can see how a new lender can't give me the benefit of the doubt.

The waiting game is just so hard.  2015 seems so far away and 2017 till my file is squeeky clean seems like another lifetime.

I feel like a prisoner...I really do.

[Scupra]

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@danny4l wrote:

Thank you for the replies.  I have learned some valuable information.

StartingOver made the obvious easy for me to understand.  I understand that I'm in a DMP because of credit card debt and I can see how a lender would look at that and not want to issue me a new credit card.  I guess I know that I will be responsible with the new credit because I want to build my credit but I can see how a new lender can't give me the benefit of the doubt.

The waiting game is just so hard.  2015 seems so far away and 2017 till my file is squeeky clean seems like another lifetime.

I feel like a prisoner...I really do.

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Keep your head up! Once you are out of DMP you will be in a much better position. I know it sucks to sit back and see a bunch of approvals and you aren't one, slow and steady wins the race though!

[dcsfd38]

Hey Danny4l, like said above .Keep it up. Like you I was in a DMP ( 5Years) and paid off my debt (around 30k ). I don't know about you, but I had the possibility to pay more than my minimum payment which I did and allowed me to get out faster of the DMP. Also part of the deal was I could not apply/get any new CC during the program.

When I started my Fico EQ score was around 670-680 ( can't recall the exact number).Now that I am out the program , it shows (today) 784. Just got my discoverIT approved right away. Amex is my next target when I will have credit activity back on.

You will be indeed in better position for a fresh start when you will be out of the program. Good luck!

[danny4l]

Thanks for the encouragment dc,

I guess I'm trying to get ahead of myself here.  I just have to learn to wait it out and 2015 will be here before I know it.

Honestly, I don't even remember what it was like to use a credit card.  I've been using cash and my debit card for the last five years.