Starting bankruptcy - scared, nervous, depressed (my story - venting)

[casmith1980]

never in a million years did I think I would need to file BK.

Thanks to an impulsive decision to file for divorce (uncontested), and a quick divorce decree (1 day turn around), I only have myself to blame for being in the position I'm in. 

To to provide a little backup, I met with a divorce attorney and was told my retainer would be roughly $10k for a contested divorce. She recommended I file uncontested and then file bankruptcy (which that retainer was $2,500). 

I got myself in way over my head with credit card debt - to the tune of $60k plus anther $35k in debt for an upside down car note. Since the majority of the "community" debt was in just my name, and the ex didn't want to pay a penny, I conceded to bankruptcy. 

I was was able to save my retainer up over the course of 3 months....looking back, had I shown that type of discipline with paying off my debt, I probably wouldn't be in this predicament. Oh well...what's done is done. 

I officially filed for Chapter 7 12/5/14.....I plan on surrendering my car (hopefully I'll be able to hang onto it until discharge) and then it's credit building time. 

I feel completely inept and ashamed, but I suppose that will pass in time. Thank god for these forums.  Having a place to go for support and advice is amazing. 

I signed up for the 3 bureau monitoring service and am surprised to see all my Syncrony and Commenity Bank accounts listed as "included in bankruptcy" already and so far, NO collection accounts!!  

With all that said, I was hoping someone could answer the following questions:

when will I need to contact VW credit to surrender my car? (I haven't paid since 8/28/14)

How soon can I apply for a capital one blank check car loan?

thank you to everyone in advance!

Scores right now are all around 530/560

[Anonymous]

Honestly, I wouldn't worry about contacting VW. They will contact you (or your attorney, if you have one).

As for when you can get another loan, you should be getting car loan offers in the mail already. That said, the standard advice given here is to wait until you are discharged to start getting credit.

[casmith1980]

Thanks!  I guess I'm just trying to determine how much time I have to save money for a car before turning the one I have over. 

I'm sure there's no "one size fits all" answer, but if it's safer to assume I'll have my car throough discharge, that definitely opens up more doors

I've already received a couple "we can finance you after BK" letters in the mail, but didn't want to jump the gun (especially before my 341 meeting).  If i'm able to get financed through Capital One, it would definitely be nice to get an idea of the amount they're willing to loan me so I know where to start looking.

I feel like this is a hurry up and wait game

[gdale6]

As already stated dont contact them. They will either file with the BK court to lift the automatic stay if you are not reaffirming or they will wait till the discharge before repoing the car, in any case do not app for any credit until you get the discharge. Good luck

[Anonymous]

 I empathize with your predicament. Many years back I went through a BK and I can remember the feelings of anxiety and wanting to get on with my life but it was slow torture waiting for the discharge to happen. It seemed like everything in my life was on hold.

Try not to feel depressed or ashamed about what you are going through. Think of bankruptcy as a fresh start on life, not a failure of your life. 

Don't offer up your vehicle voluntarily thinking your good intentions will be recognized or rewarded by the creditor. Instead it is probably best to rely on your attorney to direct you in this matter. 

And don't start seeking out new credit before the BK has been completely resolved. I fear there could be problems if you are seen applying for new credit before the old ones have been discharged.

Finally, be strong and don't worry too much. Recovery from this will be easier than you think.

[casmith1980]

Thank you for your encouragement.

In the meantime, since I feel my hands are tied,I've been trying to clean up my reports (as best I can for now). A lot of items are being reported as "discharged, included in bankruptcy" and I haven't even had my 341 meeting yet!  With that said, the ones that are still reporting a balance, I've disputed as IIB and will continue to do so

Hopefully by 3/10/15 (anticipated discharge date) I'll see some score improvements. 

I plan on obtaining (1) credit card to use for business expenses, a saving rebuilder loan and a car loan - that's it!  I don't really care if the card is secured or unsecured - as long as it reports. 

After speaking to the ex - he's agreed to let me piggyback on his credit once my BK is discharged (and has offered to assist me with obtaining a car loan if I don't have any other options).  Overall, 2015 will be a much better year

[TRC_WA]

---

@casmith1980 wrote:

After speaking to the ex - he's agreed to let me piggyback on his credit once my BK is discharged (and has offered to assist me with obtaining a car loan if I don't have any other options).  Overall, 2015 will be a much better year

---

How nice of him...

BTW, FICO 08 doesn't put nearly as much stock into AU accounts.  You'll need to be patient...  rebuilding takes time.