topic Re: Update: after discharge from Chapter 13 BK in Bankruptcy

Update: after discharge from Chapter 13 BK

lavonda — Fri, 07 Sep 2018 17:07:44 GMT

Hey gang,

So here is a little update with me after my BK13 discharge. Original file date 6/23/13 - discharge darte 7/12/18. During my BK I opened up several credit cards with the first being a secured card with my bank to start rebuilding credit. I did not want to wait until the end. I opened up 2 Credit One cards (good for rebuilding-not long term as they have a monthly fee) Discover, FNB and Amazon Credit and JcPenny. I have several student loans as nursing school several years ago is what got me to struggling financially. I had no choice but to fall into a BK13. No regrets though. Used my cards monthly, paid balances in full and also opened a Self Lender account to help with rebuilding. Fast forward to this years since my discharge. I have opened up a FNB loan - to conintue to help rebuilding, a new car loan for a 2017 Nissan Max, 7.49% (which I will refinance after about 1 year) and lastly Capital one was gracious enough to let me back in as I burned them during my BK13. Overall my FICO - 8 scores are as follows, TU-675, Experian 657 and Equifax 673. Not bad, but not where I want to be. I already had a mortgage, however they no longer report due the BK. I would say throughout this lesson, If anyone has filed BK - rebuild during the process and do not wait until you discharge. Your scores will look better in the end. In 2 short years this will fall off my credit report and I am sure to heard toward 750-800 scores.

Re: Update: after discharge from Chapter 13 BK

Anonymous — Fri, 07 Sep 2018 17:41:51 GMT

@lavonda wrote:
Hey gang,
So here is a little update with me after my BK13 discharge. Original file date 6/23/13 - discharge darte 7/12/18. During my BK I opened up several credit cards with the first being a secured card with my bank to start rebuilding credit. I did not want to wait until the end. I opened up 2 Credit One cards (good for rebuilding-not long term as they have a monthly fee) Discover, FNB and Amazon Credit and JcPenny. I have several student loans as nursing school several years ago is what got me to struggling financially. I had no choice but to fall into a BK13. No regrets though. Used my cards monthly, paid balances in full and also opened a Self Lender account to help with rebuilding. Fast forward to this years since my discharge. I have opened up a FNB loan - to conintue to help rebuilding, a new car loan for a 2017 Nissan Max, 7.49% (which I will refinance after about 1 year) and lastly Capital one was gracious enough to let me back in as I burned them during my BK13. Overall my FICO - 8 scores are as follows, TU-675, Experian 657 and Equifax 673. Not bad, but not where I want to be. I already had a mortgage, however they no longer report due the BK. I would say throughout this lesson, If anyone has filed BK - rebuild during the process and do not wait until you discharge. Your scores will look better in the end. In 2 short years this will fall off my credit report and I am sure to heard toward 750-800 scores.

Terrible advice without clarifying that you need trustee approval to take on any new debt while in a 13, and if in a 7, it's advised that you wait until discharge (which is only a few months anyway.)

Re: Update: after discharge from Chapter 13 BK

lavonda — Fri, 07 Sep 2018 18:46:50 GMT

Well let me clarify with you Sir, I did get advice from my trustee. And might I add you must get trustee for huge approvals such as a car or home. At any rate how I handled my BK is how I handled it and it worked well for me. I clearly know the rules regarding both. You are however entitled to your opinion. Thanks for telling me what I already knew. Carry on......

Re: Update: after discharge from Chapter 13 BK

Anonymous — Fri, 07 Sep 2018 19:51:42 GMT

@lavonda wrote:
Well let me clarify with you Sir, I did get advice from my trustee. And might I add you must get trustee for huge approvals such as a car or home. At any rate how I handled my BK is how I handled it and it worked well for me. I clearly know the rules regarding both. You are however entitled to your opinion. Thanks for telling me what I already knew. Carry on......

I was clarifying for anybody else that might be reading along since you left that part out of the OP.

Re: Update: after discharge from Chapter 13 BK

Yeliaba1 — Sat, 08 Sep 2018 02:33:44 GMT

Thanks for the post OP. I’m sure your advice will be helpful to many. I believe the majority in Ch 13s are aware they need trustee approval or legal advice. Congratulations on your progress. I have 6 months to go on my Chapter 13 and solid FICO 8 scores (EQ 687, TU 670, and EX 676). My lowest mortgage score is 693. I recognize your attempt to give hope to those laboring through CH 13s and I’m sure it’s appreciated.

Re: Update: after discharge from Chapter 13 BK

SweetCreditObsession — Sat, 08 Sep 2018 05:36:48 GMT

Congratulations on being a survivor!

Re: Update: after discharge from Chapter 13 BK

SweetCreditObsession — Sat, 08 Sep 2018 05:39:35 GMT

I agree, Yellaba1. Many of these posts are geared toward folks that have filed ch 7, the rules differ and the options too. Congratulations, Ms. L and well done to both of you. Best wishes.

Re: Update: after discharge from Chapter 13 BK

missy42 — Wed, 03 Oct 2018 15:48:24 GMT

Congrats on your progress, I reached out to my Trustee's office and was told no new credit was allowed while in Chapter 13 to include secure cards. I ran it through my lawyer's office first and they thought I could. Once the trustee's office called them back I was told no. I'm in Middle FL Bankruptcy Court and I guess it just depends. I'll wait until after I'm discharged in 2022. Long way to go but I'm 1 year in plus after 5 years of no credit I'm guessing the scores will be okay and I'll just start with secure card. Just confused as to how so many others seem to be able to start with their credit repair early. I did have several things happen to miss some payments and had to modify my plan so I would not be dismissed. Maybe I'll try in a few years who knows. I just know Chapter 13 is a long 5 yrs and I'll be happy when 2022 gets here!!!

Re: Update: after discharge from Chapter 13 BK

lavonda — Wed, 03 Oct 2018 15:58:09 GMT

Wow, I guess it does depend on where you file and where you live. I live in Nebraska. I did start off with a secured card. However, I never missed any bankruptcy payments. Wondering if that is why they said no new credit. At any rate I was never questioned about the new accounts I opened up. But I never kept any balances on them either. 5 years is a long way to go. I had to do something to rebuild. But if you want to start rebuilding without a credit card look into a self lender account. It helped me out with points.

Re: Update: after discharge from Chapter 13 BK

dynamicvb — Wed, 03 Oct 2018 16:47:36 GMT

New credit or not depends on the state you filed in from what I've read. I was told absolutely no new credit without approval and the only thing they would approve would be a mortgage from what the trustee told me.

I'm actually grateful for my rules of no new credit during repayment. It taught me how to budget better to handle those unexpected expenses without putting them on a revolver.

Re: Update: after discharge from Chapter 13 BK

missy42 — Wed, 03 Oct 2018 16:50:19 GMT

Thanks Lavonda, I sure will look into it. Hope I can start rebuilding at least by year 3. Until then I'll keep reading the forums and learning as much as I can.

Re: Update: after discharge from Chapter 13 BK

pizza1 — Wed, 03 Oct 2018 18:04:43 GMT

@Anonymous wrote:
@lavonda wrote:
Well let me clarify with you Sir, I did get advice from my trustee. And might I add you must get trustee for huge approvals such as a car or home. At any rate how I handled my BK is how I handled it and it worked well for me. I clearly know the rules regarding both. You are however entitled to your opinion. Thanks for telling me what I already knew. Carry on......
I was clarifying for anybody else that might be reading along since you left that part out of the OP.

@Anonymous I agree with you on this, thank you for pointing it out!

@lavonda, No need to become defensive, you left out a certain crucial point in rebuilding for a BK13, and @Anonymous, just clarified it. You have to remember we have a lot of folks out there reading these forums, and leaving out certain info means youre not giving the best advice. It may have been an oversight on your part, as you apparently knew the "rules", but for folks reading this, they needed to know they need trustee approval on everything! Next time just add that part...

Re: Update: after discharge from Chapter 13 BK

lavonda — Wed, 03 Oct 2018 18:03:46 GMT

First of all I did not get defensive. I simply Clarified my point as you can see. But thank you for coming on to post and making your statement. Much appreciated.

Re: Update: after discharge from Chapter 13 BK

CreditCuriosity — Wed, 03 Oct 2018 18:20:20 GMT

As mentioned by others a lot here come for advise and blanket statements are a bad thing especially when it could violate the law of a given state or court order etc.

Please keep this post FSR or will be locked and or post removed. Thanks

-CC
MyFICO Moderator

Re: Update: after discharge from Chapter 13 BK

lavonda — Wed, 03 Oct 2018 18:29:53 GMT

As I stated in my post these are my experiences from the state I filed in. I’m not going to debate with a moderator. If the post is offensive to you or anyone else. Please feel free to delete, lock or do what you wish with it. Thank you and have a blessed day!

Re: Update: after discharge from Chapter 13 BK

CreditCuriosity — Wed, 03 Oct 2018 20:32:09 GMT

Five things we don't discuss on myFICO: http://ficoforums.myfico.com/t5/User-Guidelines-General/5-Things-We-Don-t-Talk-About/td-p/336929

The biggest problem I have is this comment

"If anyone has filed BK - rebuild during the process and do not wait until you discharge."

Alot of people that take words of others as gospel this could lead to issues if they don't due their own research and due diligence.

I know you meant well with your post, but just got to be careful how things are worded especially in the BK/rebuilding sections of the forums.

With that said will just lock the thread as nothing else needs to be added.