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When do I start rebuilding after a Chapter 13

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Peanut03
Member

When do I start rebuilding after a Chapter 13

I have made two payments on my 13 so far and should have the approved plan in a few weeks.  My 341 was last week and there were no issues there.  I started this process with a BK7 last October and it was denied and converted to a 13 so I've been working on this for 11 months.  We are veterans and our attourney tried to use the means test waiver for disabled veterans but the BA said it violated the "good faith" agreement and said we were abusing the system.  

 

When should I start looking to rebuild my credit and when should I pull my credit on annualcredit.com?  

 

Also, part of the agreement with the trustee was to surrender my boat to the bank even though I was current on the payments.  I have since stopped making the payments and it has been a few months since I made one.  Has anyone done this and if so, what do I do first?  My attourney said to just enjoy it until they come get it but I'm ready to get it gone.  The last thing I need is to end up on one of the reposession reality shows or to see someone towing my boat away in the middle of the night.

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TRC_WA
Senior Contributor

Re: When do I start rebuilding after a Chapter 13

Did your attorney mention that any new credit (rebuilding) while under BR protection requires trustee approval?

I paid cash for everything for 4 years. My car at the time wasn't part of the plan so I made that payment in addition to my monthly payment to the trustee... And I had 0 credit cards.

 

I started rebuilding when I got my discharge.  It's been pretty painless too I might add.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
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Its_Me
Regular Contributor

Re: When do I start rebuilding after a Chapter 13

I started rebuilding about three years into my chapter 13. It depends on the rules set forth by your trustee. We could not obtain any non-emergency debt over $1000 without trustee approval. I started by a getting a secured credit card. After 16 months, I obtained a Victoria Secrets card.  A year later, I got a Barclays card. I only charged small amounts every few months and paid them off each month. My husband and I were able to pay off the last six months of our chapter 13 early which was a little over $4000. We just got discharged August 28! We hope to purchase another home next November so I am trying to save up as much as I can for a down-payment. Good luck!

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