Credit Cards Center Credit cards from our partners
Reply
New Member
Posts: 3
Registered: ‎10-12-2008
0

Starting on our BK and Rebuild Journey

Hi all! I've been reading the boards religiously as we prepare to file BK. The rebuild stories have been such an encouragement that I figure it's time I start writing ours down. If nothing else it gives me a good place to lay it all out in black and white.

 

The story: DH and I landed in a heap of financial trouble in 2014. We attempted to live on savings while I went back to school, and well that failed. We went through all our savings, then lived on credit, and finally had to default on all our CCs. We had to choose between food and paying the cards, and food had to win. Soon I was out of school, got a good job, good income but there was not enough left over to pay all the CCs. I have one judgment against me (Discover) with a wage garnishment. That was horrible, but then I got three more suits against me. At that point I knew it was time for BK. 

 

Basics:

Between DH and I we have $61,000 in credit card debt

No car loans thank goodness

1 mortgage through WF - current. We plan to stay in the house if at all possible. 

I have student loans of $53,000 federal, and $23,000 via Sallie Mae - all current now

I current garnishment, 3 pending lawsuits

Annual combined income $77,000, rising to $89,000 in April.

With four kids we qualify for BK 7

 

The schedule:

2/2 - first meeting with lawyer

2/24 - planned day to sign papers

2/27 - planned day to file 

 

Cards Burned:

Me - Capitol One (2)

        Citi (3)

        Synchrony (4)

        Comenity (1)

        Wells Fargo (1)

        Bank of America (1)

 

DH - Capitol One (2)

        Citi (2)

        Chase (1)

        Wells Fargo (1)

 

The plan: Once we have our 341 meeting I plan to open a checking and savings with NFCU and slowly move our day to day activity to them. I plan to follow the 700 in 24 plan pretty closely. Once we discharge I hope to get both DH and I secured cards through NFCU. I really don't want to go the CreditOne route unless we have too. Also I have little need of the easy to get store cards that can start the rebuild. After a few months I plan to get us each a second card. I'm not sure who, as we both are burning Capitol One. At one year continue to expand, etc. My Sallie Mae loans are co-signed with DH so both of us have at least one installment loan, so no need to add one of those. 

 

 

Ultimate Goals: Get us to a safe financial level that we can get a loan if needed. Build a good relationship with NFCU and eventually get their unsecured cards with a decent limit. Have a good savings and good credit limit cushion as a safety net to emergencies. Get our FICOs above 700 and keep them there! 

 

 

So the questions I have:

Can both DH and I each open our own NFCU cards, specifically secured cards, with one joint account? I don't want to have to make separate accounts if at all possible. 

 

Any ideas on a good second card to get 5-6 months post-BK if CapOne is not an option?

 

Our lawyer said the trustee may want to keep our BK open until he can get a portion of our tax refund next year. Is this possible? Logical? I haven't read about that happening to anyone else. We do tend to get a significant tax refund each year (8-10,000). The lawyer had us change our deductions from 1 to 4 so they will take less tax, so we have more each month and less for the trustee to take in a chunk.

 

Our mortgage (WF) - I know I will need to contact them to pay while in the BK process. Afterward will I be able to access the account online again and pay there? Will they continue to pay our taxes and insurance as scheduled (the payment includes those monthly)? We have taxes due in April, most of the money is in the escrow ready, but I worry they won't pay it d/t the BK?

 

 

 

I think that's all for now. I will continue to post as we move along. I am starting to see a light at the end of the tunnel. For this first time in a long time I feel hope for our financial future. 

 

 

Valued Contributor
Posts: 1,132
Registered: ‎09-28-2014

Re: Starting on our BK and Rebuild Journey

Some suggestions:

 

Why don't you open accounts with NFCU now, if possible? In any event, you do not want to have checking/savings at any company which you are including debt in your BK - many have wording buried deep in the terms that state they can take any deposits you have with them to offset the debt. Once you have filed BK any attempt to collect a debt included in BK is against the law, but better to be safe.

 

I assume you don't intend to reaffirm the mortgage, just continue to pay on time? I'm not sure you will be able to pay the mortgage from a Wells Fargo online account. My bank, BMO Harris, is a real stickler on that - they say that their taking the payment from my account can be considered an attempt to collect a debt discharged in BK, I have to send it to them from my bank's Bill Pay, aka a "voluntary payment". 


Scores FICO 677, Fakos TU 729, EQ 723, EX 714 BK7 discharged 1/31/2011
New Member
Posts: 3
Registered: ‎10-12-2008
0

Re: Starting on our BK and Rebuild Journey

Thank you so much for the reply! I do plan on not reaffirming the loan and just doing a pay to stay. If push came to shove I would reaffirm but I am hoping not. 

 

I would love to join NFCU now, I just worry with the trustee. We have to give him all of our bank statements and I thought opening a new account may complicate things. I don't want to do anything that would set off red flags. I very much worry about accounts being frozen. Our main bank has no other accounts with them so hopefully it will not be an issue. We also have a WF account, which I never use and fully expect to get frozen. Either way we plan to close it if we can't access our mortgage online anymore. 

 

 

Highlighted
Community Leader
Senior Contributor
Posts: 5,048
Registered: ‎07-12-2012
0

Re: Starting on our BK and Rebuild Journey


nomadicpixie wrote:

Thank you so much for the reply! I do plan on not reaffirming the loan and just doing a pay to stay. If push came to shove I would reaffirm but I am hoping not. 

 

I would love to join NFCU now, I just worry with the trustee. We have to give him all of our bank statements and I thought opening a new account may complicate things. I don't want to do anything that would set off red flags. I very much worry about accounts being frozen. Our main bank has no other accounts with them so hopefully it will not be an issue. We also have a WF account, which I never use and fully expect to get frozen. Either way we plan to close it if we can't access our mortgage online anymore. 

 

 


FWIW I just asked my lawyer if I could open an account with NFCU prior to d/c. There was no issue with this at all in my case.

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

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.