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Pre-Chapter 7 Questions

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StartinOver
Frequent Contributor

Pre-Chapter 7 Questions

I injured myself 2 years ago which has caused many other things to awaken in my body, including extreme arthritis and the need for a new hip. I can't miss work with no pay and I have no one to care for me so I can't get a new hip at this time. Every medical procedure made a new account which went to collection.  Since then 3 CC have been discharged.

 

The straw that broke the camel's back was when my 2011 F-150 was in for a tune up and the motor went out when there. The extended warranty is covering the new motor that is on a 2 month backlog, but I'm stuck with an extra $500 and no rental longer than 4 days, and at least 3 months without transportation. No family, and only 1 friend who can take me temporarily to work.I don't wish to reaffirm this vehicle that might be valued at $17K, but I owe $22K. I need an economy car.

 

Even though I use a cane and can't walk more than 1.5 blocks, I bought a 3 wheel bike and pedal 4 miles one way to work. When I've tried in 100 degrees heat to pedal home my back went out and I can't work the next day. I am barely holding on. In a few months we will have snow, then I can't get to work at all.

 

Forseeing Chapter 7 in the near future I went to the CU 1 block from my house and asked for an auto loan. They told me I am a good candidate for bankruptcy!

 

I'm trying to get my ducks in a row to file. It is hard to do without transportation!

 

My first concern is that my score might not recover for a long time after discharge because I haven't paid on 3 CC for about a year and they have charged off already. And my medical bills have all gone to collections. I have maybe 12 student loans that I haven't paid on since deferment ended in April.

 

I owe about $40,000 student loans and about $50,000 otherwise, not counting my home, which I wish to retain and have a little bit of equity. I am trying to finish repairs and sell it, quit my job, then apply for disability. I am fortunate to have a union job and not lose it during this time, even though I am barely holding on. I am giving all to my job (about 70%), but can't function at home but about 40%. Can't consistenly pay bills or take meds or anything. I just can't do what I could do 2 years ago. I am almost 61.

 

Believe it or not, I know more than average about credit (been on these boards for several years), understand a lot about bankruptcy, and a lot about student loans and disability. Just thought I'd add that before someone gives me any adviced or tells me I can't get on disability or get rid of my student loans.

 

I just don't see how I can hold out and recover to get a car loan (that isn't insane % interest) to maintain my job until my house is ready to sell.

 

 

 

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
Message 1 of 4
3 REPLIES 3
StartinOver
Frequent Contributor

Re: Pre-Chapter 7 Questions

Another question I forgot to ask is if a home must be re-financed when reaffirmed? I wish to leave everything like it is. Does anyone know if you just sign a paper or need do more if your payments are up to date?

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
Message 2 of 4
Anonymous
Not applicable

Re: Pre-Chapter 7 Questions

If you don't already have a CC or if one of the ones that's been CO is CapOne, you can go get a new CC easily after a year from charge off or bankruptcy if causing them a loss. You can get cars and new loans etc after BK it might just take a little extra leg work. It seems like in your scenario Bk is the best option. I called around to a few dealerships and told them my situation and spoke with the finance managers and had one that really went above and beyond and got us into a new car for my husband that was better than we originally were looking at. the APR isn't fantastic, but it's not horrible. We can easily refinance it in a few months and get normal APR since even with just filing BK our credit scores are 650s and this will just improve it.

I wouldn't hodl back from Bk just because you don't think you can get stuff after, you might just have to be a little more realistic of the situation and do legwork to get what you want. Even with your poor credit now, a lot of people actually see a credit score improvement after filing. In our case prior to BK our credit was 550s, and with filing it's 650s. Not like this happens for everyone, but it can happen.

Message 3 of 4
StartinOver
Frequent Contributor

Re: Pre-Chapter 7 Questions

All my income and credit building will only apply for a very short time, until.my house sells and my job ends. I won't be able to gety cards or loans after that date.

 

What I am hoping for is that my new credit union I just joined might give a loan in a couple months, which would be better than a dealer might give. THen when my house sells I want to deposit the amount of money I owe, plus interest into an account which will make the monthly payment so I might build credit history, rather than just paying it off.

 

So, at the same time I am not paying my student loans, I will be paying on my car. It will take a long time to get my student loans forgiven.

 

I will be trying to rent an apartment then, which will be looking at my credit report, which will be bad and not recovering.

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
Message 4 of 4
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