topic Re: Recently filed Chapter 7 in Bankruptcy

Recently filed Chapter 7

bkelly906 — Mon, 18 May 2020 23:18:54 GMT

Hello all,

On 4/30/2020 I finally threw in the towel and filed Chapter 7. I had been debating it for a year and half and wish I would have filed earlier. Due to COVID-19 my MOC is over the telephone but it isn't scheduled until 7/10/2020 so I still have a bit to wait.

I burned quite a few CC's including Discover, AMEX, Capital One, Citi, Chase, Barclay, Sync (Amazon & JC Penny), Kohl's, TD Bank (Target) and I have 1 collection on my report from Cavalry Portfolio Service for Citi.

I do have some closed CC's that were in good standing and will hopefully help my profile in the future.

I also have an auto loan through DCU that I only owe about $3k on and it has never been late. I am hoping to re-affirm this so they continue updating after the bankruptcy is dismissed.

I came and looked at the forums for advice and realized that I have jumped the gun on a few things that will hopefully not hurt me.

I have opened the following CC's since I filed to try to re-build right away (Had I looked here earlier I would have realized that I should have waited until after I was discharged!!)

CreditOne - $400SL w/ $75 AF 1st year and I plan on closing after that

Indigo - $300SL w/ $75 AF 1st year and I plan on closing after that

Capital One Platinum - $1000SL w/ no AF (I was just curious and checked their prequal and this was offered...I could not belive it)

There will be no more applications for a while.

I also opened an account today with NFCU just to get in the door with them. I was able to join because my dad was in the USAF but I am a little worried because I don't have the proof with me. I did explain this to the lady that helped me open the account and she said it wasn't flagged when she opened the account so she doesn't forsee them asking for supporting documentation. I have read where some people have had their accounts closed and I don't want that to happen so I'm not moving anything over just yet! It will give me time to get a copy of his DD214, when the archive office re-opens, and I will have that with me whether they ask for it or not for my own peace of mind.

I am definately going to stick to a budget and change my spending habits from here on out and use credit wisely from now on.

Any advice or words of wisdom are appreciated.

FICO 8 CS's are: EQ 569, TU 560, EX 538

Re: Recently filed Chapter 7

Anonymous — Mon, 18 May 2020 23:52:55 GMT

Congrats on pulling the trigger. I filed Ch7 same day as you. I wouldn't have guessed you could apply for additional credit while during Ch7 process (I would just expect that at this time nobody would give me anything), but I think you'll find others on here will tell you that's not really something you want to do until discharge, as you've indicated.

I burned a lot of big players too from CapOne, Amex, Chase, Discover, Synchrony to Citi. I guess I'll have to start my rebuild with others.

There is so much info on these forums and you'll find a wealth of knowledge and experience from so many here. Because of this forum I saved myself a lot of heartache before filing and I knew to cut my losses before going deeper. Of course I have yet to finish the journey (MOC is 6/1) but I hope that goes well and I have hope for the future. I want to get into the 2 year 700 class! Good luck to ya!!

Re: Recently filed Chapter 7

Anonymous — Tue, 19 May 2020 00:13:56 GMT

I'm thinking you have a problem opening new credit cards. If you think about it, you're telling the court that you need relief from creditors and before you've even completed that process, you take out new credit. You might have been required to seek the permission of the trustee. I would speak to your attorney immediately to mitigate any issues this may have caused as quickly as possible.

Re: Recently filed Chapter 7

Mjhall85 — Tue, 19 May 2020 00:52:42 GMT

Congrats on filing for chapter 7 finally. I as well considered it for a good year plus and pulled the trigger this past February now I am just awaiting discharge. I haven't got any credit yet as I am waiting till after discharge but my attorney told me I could rebuild the day after I just chose not to.Those cards should be okay for your rebuild. I'd check out the thread from bk to 700 in 2 years. it's a good read. Don't sweat the MOC it'll go quick and then you just have to sit and wait for discharge.

Re: Recently filed Chapter 7

TattnallTrio — Tue, 19 May 2020 00:56:53 GMT

I'd be concerned with including Capital One debt in your petition and then opening a new CapOne account. When your BK petition was submitted to the court, all of your creditors are electronically notified. When Capital One pulls your profile up they're going to code all your accounts with a Bankruptcy code.
The best case scenario: they close your new $1k Platinum and write the balance off.

The worst case: the complain to the trustee at the meeting of the creditors about this and you have to pay out of pocket whatever is owed on the new $1k cc.

Credit One and Indigo probably won't care