topic Re: Chpt. 13 - Petition Filed as of 3-14-2020 in Bankruptcy

Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Sun, 15 Mar 2020 16:15:53 GMT

Hello

What's that old saying, something about falling from grace. Well yeah, that has happened to me. A few years ago I had great credit 700-745. I financially supported a 6 year relationship, but foolishly I took out credit cards to make spouse happy etc. Now I am over $40,000 in credit card debt. We've separated and beginning the process of legal separation then divorce. Anywho...I just filed for Chpt. 13 because I can't afford to pay back all of my debts, plus I make too much for Chpt. 7 (which I think is silly but thanks Congress).

I just notification on myfico that this bankruptcy (petition to file) has been listed on my credit report. So I'm not just wondering what will the next steps be. Anyone with experience to provide some input, a lot of these posts are more about celebrating the discharge, but I'm nowhere near that end of the tunnel. So just wondering if there's anyone here with open/freshly new Chpt. 13s that give some insight. I know I make my monthly payments to trustee, I know I still have to go to court; but just curious about what to expect next.

Thanks

Re: Chpt. 13 - Petition Filed as of 3-14-2020

FireMedic1 — Tue, 17 Mar 2020 20:03:14 GMT

Here’s what you can expect in a typical Chapter 13 from start to finish. Good Luck!

https://www.alllaw.com/articles/nolo/bankruptcy/steps-chapter-13.html

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Wed, 18 Mar 2020 17:37:30 GMT

@JayPaulM29 - Good afternoon,

You are NOT alone, I just signed/filed my chapter 13 plan and list of creditors yesterday. I'm not happy about it, I wanted to file a chapter 7, but... it is what it is at this point. I'm upset my lawyer listed all of my creditors, even the paid in full/closed accounts on my list of creditors, the legal assistant said it had to be done. I was told by others to omit them if they were closed and paid in full. Did you omit your closed accounts that were paid in full/perfect record? I paid off the creditors/banks I wanted to get back into after this process is over, then I closed them, that way on my credit reports, It will say "closed by consumer" as opposed to "included in bankruptcy"

I'm trying to trust the process... I'm waiting on my court date (MOC), and with this COVID-19, who knows when that will be. I will make my 1st payment on April 17th, and every month after that for the next 5yrs #NOTHAPPY.

YOU ARE NOT ALONE and this too shall pass!

Let's keep each other posted, most people on these forums are lucky enough to be able to file chapter 7, there aren't too many 13's on here.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Thu, 19 Mar 2020 16:17:26 GMT

@Anonymous wrote:
@JayPaulM29 - Good afternoon,

You are NOT alone, I just signed/filed my chapter 13 plan and list of creditors yesterday. I'm not happy about it, I wanted to file a chapter 7, but... it is what it is at this point. I'm upset my lawyer listed all of my creditors, even the paid in full/closed accounts on my list of creditors, the legal assistant said it had to be done. I was told by others to omit them if they were closed and paid in full. Did you omit your closed accounts that were paid in full/perfect record? I paid off the creditors/banks I wanted to get back into after this process is over, then I closed them, that way on my credit reports, It will say "closed by consumer" as opposed to "included in bankruptcy"

I'm trying to trust the process... I'm waiting on my court date (MOC), and with this COVID-19, who knows when that will be. I will make my 1st payment on April 17th, and every month after that for the next 5yrs #NOTHAPPY.

YOU ARE NOT ALONE and this too shall pass!

Let's keep each other posted, most people on these forums are lucky enough to be able to file chapter 7, there aren't too many 13's on here.

Thankfully there is someone on here who didn't file 7 years ago and celebrating their new found life! Yes let's keep each other posted. All of my closed account with no balances were not included, but those were accounts were over 2 years ago. I can rightfully say that all of my creditors that were included have balances/high balances. My court date is April 8th and like you, I'm not sure how this will go since COVID-19 has literally shut down everything in Chicago. I'm hoping this doesn't prolong the process. I too am on a payment plan for the next 5 years.

I so wanted to file a chpt. 7 but my income didn't support a claim to do so, which sucks, but paying my little $500 a month is so much better than paying all of my creditors a month (roughly $1800 to $2400 a month). Let's take it day by day. I can say since this chpt 13 has hit my report, my scores did a 30+ point jump, still shocked :-/

Did you apply for a secure credit card? I heard mixed comments about applying for one now while in bankruptcy, not doing until you get trustee's approval, etc...

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Fri, 20 Mar 2020 14:05:35 GMT

@JayPaulM29 -

My attorneys filed on 3/17 and this morning (3/19) I received my first two notifications on MyFico (I have a subscription) and my Experian score jumped 14pts and my Equifax score jumped 38pts

Because of my income and other things, I was forced to file a chapter 13. I'm not happy, but this too shall pass. I will create my pacer account today.

Since we are dealing with COVID-19, the courts are closed in South Florida (Broward County), I'm assuming I'll get a court date (MOC) after this is over, I'm hoping this will be over sooner than later.

I have asked my lawyer to include a secured credit card in my plan, we shall see what the trustee says.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Thu, 19 Mar 2020 21:18:40 GMT

I'm near the end of my Chapter 13 but what I can say is "Don't stress it." (Easier said than done though, right?)

I, too, was like you. Racked up bills with my ex, we split up and I was left with a crap ton of debt. I should have known better. Anyhow, I met with the attorney. (All my bills were still current but I knew I couldn't make all the payments) Paid the attorney fee and court filing fee. He did all the paperwork. He said that I would only need to go to court once (the 341 meeting) and if there were any other court dates, that he would go and that I wouldn't need to. Once that was filed with the court, a 341 meeting was scheduled. The meeting only lasts barely 5 minutes but when you're sitting there, it can seem like eternity! Once that was done, me and my attorney parted ways. Haven't seen or heard from him since then (which was good.) I just made sure my payments were on time. If anything came up, I would contact my attorney or he'd contact me. I've only had to contact him once. After I made my last payment, I think my attorney emailed me about a month later regarding the completion of my payments. The courts sent me some paperwork that i had to fill out. I didn't know what to fill so I contact my attorney. Filled/signed those forms, emailed them to him and he filed it with the court. That was back in around Feb 17, 2020. I just noticed on March 17, 2020 the trustee filed some paperwork acknowleding all payments were made and if any creditors had any objections or whatever and if not then my case would be discharged 33 days from the date of service of the letter that was served to them. So I'm just waiting on the 33 days and I'll be discharged! woo-hoo!

I know filing can be nerve racking but before I filed, I couldn't sleep. It was crazy! Now that you've filed, take a deep breath and take it one step at a time. You'll see the end of the tunnel! Good Luck to you!

Re: Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Thu, 19 Mar 2020 23:31:41 GMT

Ahh thank you! This is exactly the information I was looking for/looking to read about. Ok, no stress, just day by day. I'm just glad I made the decision to file because there was no way I would have been head above water; unfortunately I accrued a few late payments while transitioning through the split to filing chapter 13.

Did you do the 3 year or 5 year plan? That 5 year plan sounds like hell, but hell I've paid car notes, credit cards for upteen years, so this shouldn't be no different. :-)

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Fri, 20 Mar 2020 14:51:14 GMT

@MiaM - Thank you so much for sharing your story with us. I am feeling better now that the process has started. Some of my accounts are now posting zero balances. What are your scores looking like now? How did you deal with raises/bonuses? Did you start working on your credit during your payment plan? I asked my lawyer to ask the trustee if I could get a secured credit card (I'll get one that graduates). My student loan will continue, I've had perfect credit history with it. The accounts that I paid off and did not want to include in my bankruptcy sent me letters months ago after I closed them, they all say "closed per consumers request", so if the credit bureaus change my status "included in bankruptcy" on those accounts, I have documentaion that will hopefully get it taken off. My one and only goal and main reason for filing is to purchase a home. I've seen a few stories on here where other people have purchased homes a year after their plan has started. That is definietly motivation for ME. Again, thank you so much for sharing. Any tips will be greatly appreciated. Stay safe!

Re: Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Fri, 20 Mar 2020 14:39:39 GMT

@Justme79

Yeah I haven't heard from the courts yet either about postponing the dates or what not. Kudos to the scores jumping up, mine have gone up nicely, still not good but I'll take whatever I can get. Keep me posted on the secured card advice and recommendations. Like you, I want to purchase a home later down the line; my credit cards are posting $0.00 balances which nice. I haven't seen those figures in a looong time.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Fri, 20 Mar 2020 16:06:15 GMT

@Justme79 - my scores per CreditKarma is 567-580. I haven't subscribed to anything else that would give me my true real score as I dont really care for them at the moment. I have a house and a car so I wont be making any big purchases soon.

As far as raises go, I work for the state so I get annual 5% raises...that didn't increase my monthly payments to the trustee. Although mine did go up an additional $50 after 2 years because I think I had paid off something during that time and my attorney made me aware when I first filed that it would be going up that additional $50 which really didn't make much of a difference.

Did i start working on my credit during my payment plan? Well, you're supposed to get approval before accruing any more debt such as credit cards, car loans, mortgages. I didn't do anything during that time although I did get a CreditOne card. I also had my home loan modified which had to be approved by the trustee which it was.

As far as purchasing a home while in Ch13 is possible. I've read stories where after 12 months, they were approved by the trustee to get a home loan. I didn't have that issue since I purchased my home before I filed.

Also my tax refunds, although not a lot, a couple hundred dollars if that...I didn't have to turn it over to the trustee. He let me keep it.

I've learned that being in Ch 13 that I can survive without credit cards. Although they are nice, they can get you in trouble if irresponsible. I dont think I was irresponsible but I just had a lot and knew that if I didn't file then I would've been in a huge mess and wanted to avoid that.

Good luck to you! It'll be over before you know it! And best part is, the 7 years counts while you're in payment plan so I filed in 2016, it'll fall off my credit report in 2023 so I'm stoked about that! Looking forward to a clean credit report!

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Fri, 20 Mar 2020 16:09:11 GMT

@JayPaulM29 - Not sure if your reply was meant for me but I'll answer it anyways. If it wasn't for me, just disregard my reply. LOL

I was on the 3 year plan since I didn't make a whole lot (annual salary is about $65-70k). I was on the 3 year plan...my monthly was $150 for the first two years then jumped to $200 the last year, which I was aware of at the time of filing so I wasn't surprised by it. I think it was because I would have paid something off (that wasn't included in my bk) so the attorney added the extra $50.

Being on the 3 year plan sounded like a long time but it flew by real quick. Whether you're on the 3 or 5 year plan, it sure is shorter than trying to pay off the cards without BK.

Good luck to you!

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Wed, 25 Mar 2020 15:17:37 GMT

@JayPaulM29 - I receievd my dates...

MOC - April 27th

Confirmation Hearing June 11th

Scores before filing:

Equifax 497

Transunion 504

Experian 488

My scores are changing daily... I'll let you know what they are when they are "settled"

Re: Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Wed, 25 Mar 2020 16:06:37 GMT

@Justme79

Awesome, let's definitely keep up each other updated. Not sure if I mentioned it before, but my details are below.

MOC: April 8th 2020 at 1PM

Confirmation Hearing: May 4th 2020 at 10:30AM

Scores before filing:

EX: 505 ---after filing: 537

Trans: 525 ---after filing: 557

EQ: 510 ---after filing: 565

I still have some things that are closing/changing to Chpt. 13 bankruptcy, so my scores may still fluctuate. I can update you after my MOC (if it doesn't get rescheduled due to COVID) to let you guys know how it goes.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Tue, 21 Apr 2020 16:24:09 GMT

@JayPaulM29 - Good afternoon,

Just checking in and seeing how you're doing. I made my 1st payment on April 17th. My MOC has moved to May 20th (Via telephone) and my Confirmation Hearing is set for June 11th.

My scores as of today are (MyFico)

Equifax 573

Transunion 556

Experian 558

My Target card survived and I'm still going back and forth with Comenity Bank.

I hope all is well on your end

Re: Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Tue, 21 Apr 2020 16:30:58 GMT

Hey @Anonymous !!!

My MOC date got cancelled due to COVID-19; I haven't received my updated meetings dates just yet, but I made my first payment on 4-13-2020 and it felt great; it finally felt real. My scores have changed significantly and are still updating. My credit one bank credit card got flagged as 30 days late yesterday, although my Chpt 13 petition was confirmed on 3-13-2020; so I am working on disputing that, hopefully that late payment gets removed.

Current scores now

Transunion: 590

Equifax: 592

Experian: 542

Even though this is FAKO, my credit karma transunion score went up 163 points to 673.

Good to hear from you and see that you're making progress on this!

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Tue, 21 Apr 2020 16:39:58 GMT

@JayPaulM29 - Good hearing from you as well, let's keep each other updated/motivated. I'll check back in after my MOC.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Tue, 21 Apr 2020 17:45:10 GMT

Ps. Comenity Bank Bankruptcy Dept just contacted me, they are removing (2) of my tradlines with them. Barneys and ZGallerie. Not sure how I feel about it. I had nice credit limits and clean history, I only asked for them to put "Paid as Agreed" or "Paid Satisfactorily", the rep said both have been deleted. My RH account will remain and she put "closed by consumer" on it.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Wed, 22 Apr 2020 02:13:47 GMT

@Anonymous

Oh wow, that sucks. All of my creditors have zero out my balances and left remarks on my accounts. Not really mad about it because it caused my scores to jump. Although, have you inquired about getting a secured card while in a chapt 13 to help rebuild? I haven't reached out about that yet, just curious to see what other's responses from their trustees have been.

Let me know what you hear.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

Anonymous — Wed, 22 Apr 2020 16:11:57 GMT

@JayPaulM29 - Do you think it would be better if the tradelines stayed? I can call Comenity back and ask her to let them stay... My lawyer said after my confirmation hearing, I'll be good to go to get a secured card.

Re: Chpt. 13 - Petition Filed as of 3-14-2020

JayPaulM29 — Wed, 22 Apr 2020 16:22:47 GMT

@Anonymous

I would say allowing the trade lines to stay, not using them, paying the balance down will probably help with the rebuilding of your credit while in Chpt. 13 (especially if they've been in good standing for a while). For me, I am leaning more towards getting a secured credit card because all of my credit cards and installment loans have been zeroed out with the bankruptcy. The only thing I have that is in good standing are my deferred student loans, so eventually I will need something to keep my scores a float for the next 3 years. In the future, I do plan on getting a car, so that'll be an installment loan which can help my scores as well.

I'll reach out to my trustee and get an idea of they recommend.