Ch. 13 Bankruptcy: Can you survive it?

[tallygirl33]

I just filed for Ch. 13 bankruptcy.  I feel very good about it because I was on the verge of getting my car repossessed and I was drowning in debt.  My husband did not file with me but his bills are manageable.  What I was wondering was if anyone had gone through a Ch. 13 sucessfully and if they had any advice for me.  I heard that the stats are awful for completing a Ch. 13 and I really want to suceed at this.  My attorney is still crunching the numbers to see if I qualify for a Ch. 7. but it looks like there is too much income between me and my husband and we won't pass the new means test.  Any advice would be greatly appreciated.

[Anonymous]

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tallygirl33 wrote:

I just filed for Ch. 13 bankruptcy.  I feel very good about it because I was on the verge of getting my car repossessed and I was drowning in debt.  My husband did not file with me but his bills are manageable.  What I was wondering was if anyone had gone through a Ch. 13 sucessfully and if they had any advice for me.  I heard that the stats are awful for completing a Ch. 13 and I really want to suceed at this.  My attorney is still crunching the numbers to see if I qualify for a Ch. 7. but it looks like there is too much income between me and my husband and we won't pass the new means test.  Any advice would be greatly appreciated.

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Chapter 13 is doable but it will be a road. The good news if that as soon as it is filed your credit will begin to improve. Just make sure everything is included upon filing and your credit report reflects this.

Its a good thing that your husband has not filed.  Once your credit starts getting repaired, add yourself as a joint borrower, if possible to his oldest account, this should give your score a boost. Just make sure utilization is low at all times to keep from causing more damage.

Good luck, the hardest part is over.  Now its time to get on with the process of rebuilding.  It is recommended that you apply for credit within 6 mos with a secured card or something.  Just make sure that bill will be manageable along with your bankruptcy trustee payments

[Anonymous]

We are in a 13 also..I thought you could not apply for anything while in it.  I have been stressing about this... because, for the next 5 years how can we rebuild our credit if you are not allowed to take on new credit.  Also, what cc company would even consider giving us credit while in a 13?

Thanks..

[Anonymous]

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Nikey wrote:

We are in a 13 also..I thought you could not apply for anything while in it.  I have been stressing about this... because, for the next 5 years how can we rebuild our credit if you are not allowed to take on new credit.  Also, what cc company would even consider giving us credit while in a 13?

Thanks..

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I apologize I was thinking Ch 7.  You are absolutely right that while you are still in repayment you cannot app for anything else.  Because you are still under the protection of the courts. The bankruptcy must be discharged.  Sorry bout that.

[indyhotmama]

Can you apply for a refi while in Ch 13?

[Anonymous]

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indyhotmama wrote:

Can you apply for a refi while in Ch 13?

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I really dont think anyone will extend while you are in active repayment but I have heard of it happening.

Here's a pretty good tmeline to reestablishing after discharge

http://www.flumelaw.com/credit.htm

Message Edited by Brammy on 09-09-2007 10:39 PM

[Anonymous]

I am just now completing my repayment plan for Chapter 13 (filed Aug-04)and expect to get my discharge soon. What I found that worked for me, is to live within the budget that you have created as part of the process of filing. It is hard at first and takes a little bit of time to adjust, but after a few months I found that it was very doable. Soemthing else that I found very useful is to create a spreadsheet for tracking the payments made to the trustee's office. This also gives you a visual goal of making it through to the end. Little by little I was able to check off the payments and see the end getting closer and closer. It really helps!! Getting to the end is not that hard, it just takes time. Also, as stated by Brammy, make sure all of your accounts are included and that your credit report reflects that also. I just started to check my credit report a couple of months ago and am currently at TU: 569, EX: 638, and EQ: 644. Good Luck and you will make it through to the end with no problems.

[Anonymous]

Oh, I was also going to add, that you can get credit while in BK13, you will have to have permission from the trustee's office for adding the extra debt. There are companies that will extend credit, but I personally stayed away from taking on more until I get through.