topic Re: My BK7 Journey in Bankruptcy

My BK7 Journey

azguy13 — Mon, 21 Nov 2016 23:54:07 GMT

I am a fairly private person to the point that I rarely speak too much on my personal finances; even anonymously online. With that being said, I feel that documenting my journey in the BK forum may not only help me accept what is to come, but may allow for some much-needed advice moving forward. So, here goes:

My wife has fairly sick for going on three years now. On Christmas Eve 2013 she was diagnosed with Acute Myeloid Leukemia with the FLT3 mutation. Other than the obvious, what this meant was that we had to move to Phoenix, AZ so she could be treated at the Mayo Clinic. Unfortunately my career field is not represented in Phoenix so I was forced to take a substantial pay cut after finding a position with an acceptable insurance plan offered. Now fast-forward almost three years and I have accrued quite the medical debt as well as credit card debt due to this. Ways that I have mitigated my costs are cancelling things such as Directv and switching from Verizon to a prepaid cell phone. I have also been successful in reducing my internet cost to $19.99 plus taxes. My Volkswagon Passat is also part of the emissions scandal so a silver lining is that I will be able to have them buy the vehicle back with also getting a few thousand dollars in restitution to purchase a cheap car cash.

Last week I met with a bankruptcy lawyer and we went over my finances and there is no question that I meet the requirements for a BK7. I am also rated at 70% disabled by the VA which effects one thing or another (I believe it has to do with the means test) but at this point has not effected much. At this point, I am going to try and finish the buyback for my Volkswagon and then will file. After completing a new budget and comparing my income/expenses from 'before BK' and 'After BK' I found that I will be cutting my expenses by $2,200/month.

While I was initially devastated that my score will plummet hundreds of points, I am excited to get into rebuilding. A number of years back I had to rebuild and it was exciting seeing my score climb. I guess I have that to look forward to again; although significantly different. I will appreciate any advice throughout this process as I am fairly new in terms of BK.

Thanks Folks

Re: My BK7 Journey

pizza1 — Tue, 22 Nov 2016 03:13:26 GMT

Hey azguy...

Im so sorry to hear of your situation. There are a few people here on the boards who have had to file, that have been around awhile.

With that much debt, BK7 is the best thing for you and your family. Im sorry to hear about your wife, and i hope she is better?? I hate to say something but I hated not too as well.

The sooner the better, and you're are already 3 steps ahead of the game. You know how to rebuild....you know your scores will dive, your reports will be a mess for a few months, and then.....all of sudden...light enters the tunnel, and your scores go up, you start with a few low CL approvals, and then 1 yr later you get better approvals.

Good luck to you, and will follow you too. You can always PM me too!...

Re: My BK7 Journey

azguy13 — Tue, 22 Nov 2016 03:25:06 GMT

Hey Pizza! I'm so glad you are still around. It seems that a lot of us that were together a few years back have dispersed (I am also guilty of that).

It has been a rough couple of years for sure but after a lot of thought I have come to terms with it. I really appreciate the support from you. I never would have thought I would have to file but I feel like the entire process was created for situations like mine. Luckily, DW is doing much better. She relapsed last year but is now 19 months remission and 14 months post-transplant. She required a stem cell transplant from an anonymous donor (she is adopted so she does not know any blood relatives) and seems to be progressing each day. I'm pretty sure I have slept in a hospital chair for a combined total of over a year, haha.

I really want to be transparent with this BK. I tend to hold things in and get extremely stressed out and this could be the perfect avenue to speak about what is going on. I miss the old days, haha.

Re: My BK7 Journey

Scupra — Tue, 22 Nov 2016 04:27:48 GMT

Well howdy neighbor! So sorry to hear about your wife but extremely happy she is currently in remission. There is absolutely that "tipping point" when BK becomes nescesary for the well being of your family, it sounds like you're there.

When I first filed I was beyond embarrassed and did not want to talk to ANYONE about it. That is actually what led me to finding myFICO and I am so glad I did. It helped me be able to talk about this with people who actually understood. Please use this as a place to vent that stress out, it's so much better than holding it in, believe me I wish you the best of luck and we are all here to help along the way.

Re: My BK7 Journey

azguy13 — Tue, 22 Nov 2016 05:11:03 GMT

Hey there Old Friend!

Just like you said, the BK is unfortunate but what matters is that my wife is doing quite well. I'm happy to hear that you were able to discuss your situation when you were going through it. That is exactly what I am trying to do. I'm still going to wait a couple of months to file but I am under contract with a great attorney so I am not worried.

I'm so happy to see that you are still here as well. As strange as it sounds, I feel like I left my family when I took a myFICO Forum hiatus, haha.

Re: My BK7 Journey

Anonymous — Tue, 22 Nov 2016 17:44:07 GMT

Agreed with everyone else here...I too was also beyond embarrassed when I filed my BK7...but these boards have been a HUGE source of help and support. Good luck on your journey. Better times hopefullyrics await you

Re: My BK7 Journey

Scupra — Tue, 22 Nov 2016 19:16:21 GMT

@azguy13 wrote:
Hey there Old Friend!

Just like you said, the BK is unfortunate but what matters is that my wife is doing quite well. I'm happy to hear that you were able to discuss your situation when you were going through it. That is exactly what I am trying to do. I'm still going to wait a couple of months to file but I am under contract with a great attorney so I am not worried.

I'm so happy to see that you are still here as well. As strange as it sounds, I feel like I left my family when I took a myFICO Forum hiatus, haha.

I totally understand! Your family is still here though Best of luck and I'm sure it doesn't need to be said, but let us know if you need anything

Re: My BK7 Journey

Anonymous — Tue, 22 Nov 2016 19:33:08 GMT

Thanks for your post AZguy13. So glad to hear that your wife is doing well. I know how difficult the decision to file can be and I also know the relief that comes with it. Being able to cut your current expenses by $2200 a month is huge! Just wanted you to know that we're all here for you and that the flip side of filing is that you get to take a deep breath. My journey is different but I am now exactly 1 year post chapter 7 discharge (this week)! Here's a link to my experience and I wish you and yours a Happy Thanksgiving!

http://ficoforums.myfico.com/t5/Bankruptcy/My-Journey-almost-1-year-post-Chapter-7-discharge/m-p/4764310

Chapter 7: Discharged November 2015
11/15 Fico 8: EQ-585, TU-550, EX- 551
07/16 Fico 8: EQ-703, TU-695, EX- 660
09/16 Post App Spree Fico 8: EQ-675, TU-675, EX-663
Cap One Platinum $2K>$4K, Cap One Quicksilver $3K, Discover $1,600, SPGVisa $4500, Red Roof Inn Siggy Visa $5K, Good Sam/Camping World Visa $1800, Overstock $7K, Lowe's $6K, NFCU Cash Rewards Visa $4600, NFCU CLOC $15K, PenFed Promise Visa $10,500, Evine $1K, CreditOne Visa $600|Total CL: $153K
Garden until September 2018 (I'll be in the pumpkin patch)!

Re: My BK7 Journey

azguy13 — Tue, 22 Nov 2016 21:39:38 GMT

@Anonymous wrote:
Thanks for your post AZguy13. So glad to hear that your wife is doing well. I know how difficult the decision to file can be and I also know the relief that comes with it. Being able to cut your current expenses by $2200 a month is huge! Just wanted you to know that we're all here for you and that the flip side of filing is that you get to take a deep breath. My journey is different but I am now exactly 1 year post chapter 7 discharge (this week)! Here's a link to my experience and I wish you and yours a Happy Thanksgiving!

http://ficoforums.myfico.com/t5/Bankruptcy/My-Journey-almost-1-year-post-Chapter-7-discharge/m-p/4764310

Chapter 7: Discharged November 2015
11/15 Fico 8: EQ-585, TU-550, EX- 551
07/16 Fico 8: EQ-703, TU-695, EX- 660
09/16 Post App Spree Fico 8: EQ-675, TU-675, EX-663
Cap One Platinum $2K>$4K, Cap One Quicksilver $3K, Discover $1,600, SPGVisa $4500, Red Roof Inn Siggy Visa $5K, Good Sam/Camping World Visa $1800, Overstock $7K, Lowe's $6K, NFCU Cash Rewards Visa $4600, NFCU CLOC $15K, PenFed Promise Visa $10,500, Evine $1K, CreditOne Visa $600|Total CL: $153K
Garden until September 2018 (I'll be in the pumpkin patch)!

Thank you WadeDalton. I have yet to officially file but I am already starting to feel that sense of relief. I am going to read your journey right now. Happy 1 year post-BK and Happy Thanksgiving also!

Also, your scores post-BK gives me hope

Re: My BK7 Journey

azguy13 — Tue, 22 Nov 2016 21:41:32 GMT

@Scupra wrote:
@azguy13 wrote:
Hey there Old Friend!

Just like you said, the BK is unfortunate but what matters is that my wife is doing quite well. I'm happy to hear that you were able to discuss your situation when you were going through it. That is exactly what I am trying to do. I'm still going to wait a couple of months to file but I am under contract with a great attorney so I am not worried.

I'm so happy to see that you are still here as well. As strange as it sounds, I feel like I left my family when I took a myFICO Forum hiatus, haha.
I totally understand! Your family is still here though Best of luck and I'm sure it doesn't need to be said, but let us know if you need anything

Oh I am sure I will be asking plenty of questions, haha. Maybe this is the way the FICO Gods are getting me to learn more about BK since this was the section I didn't know much about back in my Forum Heavy-Use days

Re: My BK7 Journey

iheartwings — Tue, 22 Nov 2016 21:42:48 GMT

azguy13 -

I've missed your posts but totally understand your absence. Also, am so thankful to hear that your wife is recovering from AML.

Life throws us curveballs, and we do what we must to survive. It's clear to me that you've thought through your options, and you're right, rebuilding is a new and exciting beginning. Since you've been through rebuilding once, you also know you'll have some ups and downs - but we will be here for you.

To echo others, I was (and am still) embarrassed that I filed BK7, even almost 10 years later. The forums remain a safe space for me to talk about my past, one that only few people in my real life circles are privy to (my SO still doesn't know). I consider myself still rebuilding because I found MF late in the game, but it's good to know that once my BK falls off my CR in a couple months, my scores will finally be in good place. We all talk about there being light at the end of the tunnel when our BKs fall off of our reports, but for you, it sounds like there is light at the beginning (in slashing your expenses) too.

I look forward to following your journey.

Re: My BK7 Journey

azguy13 — Tue, 22 Nov 2016 21:54:51 GMT

@iheartwings wrote:
azguy13 -

I've missed your posts but totally understand your absence. Also, am so thankful to hear that your wife is recovering from AML.

Life throws us curveballs, and we do what we must to survive. It's clear to me that you've thought through your options, and you're right, rebuilding is a new and exciting beginning. Since you've been through rebuilding once, you also know you'll have some ups and downs - but we will be here for you.

To echo others, I was (and am still) embarrassed that I filed BK7, even almost 10 years later. The forums remain a safe space for me to talk about my past, one that only few people in my real life circles are privy to (my SO still doesn't know). I consider myself still rebuilding because I found MF late in the game, but it's good to know that once my BK falls off my CR in a couple months, my scores will finally be in good place. We all talk about there being light at the end of the tunnel when our BKs fall off of our reports, but for you, it sounds like there is light at the beginning (in slashing your expenses) too.

I look forward to following your journey.

Hello old friend!

The AML has been a journey but each day brings a little more light. Thankfully my Wife is on an extremely successful pharmecutical trial medication and is the "posterchild" for Mayo Clinic's involvement. I could not imagine better medical support.

While I am starting to come to terms with the BK, the only person I have told is my sister who I trust 100%. Like most siblings, we don't always get along but during times like this we are great support for each other.

I think compared to many BK cases, I am filing relatively early. I jsut recognize the path I am on and in an attempt to burn as few people as possible, I think it is best to start ASAP and build/implement a responsible budget that I can stick to. Another thing that helps is that I have asked my wife to hold me accountable for everything by having weekly meetings and going over all purchases. At that point, I will just log every receipt into my budget spreadsheet which is broken down by line-item. I will basically treat my life as a business.

I am so happy your BK will be falling off shortly! It is always YOUR choice and only yours to tell people about your BK journey. Nobody is entitled to that information so if you choose to keep it to yourself then more power to you!

Re: My BK7 Journey

azguy13 — Wed, 23 Nov 2016 03:36:04 GMT

Question for you all....

Should I remove any money from checking and savings at a bank that will be IIB? To be specific, the bank is Chase. I currently have direct deposit to my Chase checking and will be including them in the BK7. I can easily change my Direct Deposit to DCU who will not be IIB at all.

Re: My BK7 Journey

iheartwings — Wed, 23 Nov 2016 04:21:05 GMT

@azguy13 wrote:

Hello old friend!
The AML has been a journey but each day brings a little more light. Thankfully my Wife is on an extremely successful pharmecutical trial medication and is the "posterchild" for Mayo Clinic's involvement. I could not imagine better medical support.
While I am starting to come to terms with the BK, the only person I have told is my sister who I trust 100%. Like most siblings, we don't always get along but during times like this we are great support for each other.
I think compared to many BK cases, I am filing relatively early. I jsut recognize the path I am on and in an attempt to burn as few people as possible, I think it is best to start ASAP and build/implement a responsible budget that I can stick to. Another thing that helps is that I have asked my wife to hold me accountable for everything by having weekly meetings and going over all purchases. At that point, I will just log every receipt into my budget spreadsheet which is broken down by line-item. I will basically treat my life as a business.
I am so happy your BK will be falling off shortly! It is always YOUR choice and only yours to tell people about your BK journey. Nobody is entitled to that information so if you choose to keep it to yourself then more power to you!

I'm glad that your wife was able to access great medical care, which can make all the difference in how one ultimately fares from their cancer. There is a lot in the way of drug development and trials offer so much hope in fighting disease!

When I first filed BK, I was still kind of all over the place with budgeting. It was really after my first year post-discharge where I really started buckling down with a budget, and you know what? I was able to start saving. Not much, but enough to have a cushion to pay for smallish emergencies. I know we all talk about it, but when it happened, it totally changed my relationship with money. So, your budgeting/tracking spending plan is awesome - especially since you're starting right off the bat. Please, though, build in something fun into your budget (it doesn't have to be big and extravagant) so that you don't go completely bonkers.

It is kind of funny. The other day a friend of mine commented that she noticed I always get receipts, even for the smallest of purchases. She thought it was interesting, but when I told her that I log everything I spend (I use the old version of YNAB) to make sure I know where my money is going, it made her realize that maybe she should be doing the same. I rarely carry cash anymore for this reason.

Thanks for sharing your story. The BK coming off (it's already off TU) will be a blessing, and while my CRs will forget about it, I'll continue to remember that BK has been a tool to allow me to rebuild (my credit was never as strong as it is now, even before my BK).

Re: My BK7 Journey

iheartwings — Wed, 23 Nov 2016 04:26:02 GMT

@azguy13 wrote:
Question for you all....

Should I remove any money from checking and savings at a bank that will be IIB? To be specific, the bank is Chase. I currently have direct deposit to my Chase checking and will be including them in the BK7. I can easily change my Direct Deposit to DCU who will not be IIB at all.

I think this is probably reasonable, especially if there is an expectation that Chase might "freeze" your checking and savings accounts because of CC accounts that will be included in BK. I don't think I've read that Chase does this on the boards (unlike, I think Wells Fargo), but as you know everything and anything is possible.

You might want to ask your BK attorney. I don't want you to be put in a situation where the court questions you for moving your money because how it looks (if you get what I mean).

Re: My BK7 Journey

Scupra — Wed, 23 Nov 2016 18:06:22 GMT

@azguy13 wrote:
Question for you all....

Should I remove any money from checking and savings at a bank that will be IIB? To be specific, the bank is Chase. I currently have direct deposit to my Chase checking and will be including them in the BK7. I can easily change my Direct Deposit to DCU who will not be IIB at all.

Better to be safe.. I would move any money away from any lender that was going to be burned.

Re: My BK7 Journey

azguy13 — Thu, 24 Nov 2016 00:13:27 GMT

@Scupra wrote:
@azguy13 wrote:
Question for you all....

Should I remove any money from checking and savings at a bank that will be IIB? To be specific, the bank is Chase. I currently have direct deposit to my Chase checking and will be including them in the BK7. I can easily change my Direct Deposit to DCU who will not be IIB at all.
Better to be safe.. I would move any money away from any lender that was going to be burned.

I will definitely move my money from Chase and I have also switched my Direct Deposit away from there to DCU. DCU will not be IIB.

I did also make a change today in accordance with my new budget. I switched from Verizon to Cricket and my bill for DW and I went from $191/mo to $90/mo. So far it seems quite acceptable.

Shaving monthly bills is definitely fun. I will really try and make the best of all this.

Re: My BK7 Journey

Anonymous — Thu, 24 Nov 2016 03:13:57 GMT

@azguy13 wrote:
@Scupra wrote:
@azguy13 wrote:
Question for you all....

Should I remove any money from checking and savings at a bank that will be IIB? To be specific, the bank is Chase. I currently have direct deposit to my Chase checking and will be including them in the BK7. I can easily change my Direct Deposit to DCU who will not be IIB at all.
Better to be safe.. I would move any money away from any lender that was going to be burned.
I will definitely move my money from Chase and I have also switched my Direct Deposit away from there to DCU. DCU will not be IIB.

I did also make a change today in accordance with my new budget. I switched from Verizon to Cricket and my bill for DW and I went from $191/mo to $90/mo. So far it seems quite acceptable.

Shaving monthly bills is definitely fun. I will really try and make the best of all this.

@Anonymous to hear your troubles and glad your wife is doing much better. There is always a light at the end of the dark tunnel I definately agree with @Scupra about moving the money from Chase.

I will be following your journey.

Re: My BK7 Journey

missy42 — Mon, 28 Nov 2016 14:00:25 GMT

Wishing you and your wife the best like you I will be posting my BK7 journey to help others as well as myself through this process.

Re: My BK7 Journey

azguy13 — Mon, 28 Nov 2016 15:39:50 GMT

Today my money was moved into DCU from Chase as I will have Chase IIB. I have also changed my direct deposit from Chase to DCU. It will be interesting having my primary financial institution about 2,000 miles away. But, DCU has always treated me well and I am happy to give them my business.