topic Re: Just filed BK 13/feel terrible in General Credit Topics

Just filed BK 13/feel terrible

Anonymous — Mon, 11 Jun 2007 23:18:16 GMT

We just filed last week and feel we will never see hope again. For the next 5 years our credit is at a stand still. We will not be able to obtain credit for at least another 5 years-how do people do it?? It is not so much not being able to have a CC, but the fact that our credit is so bad...It makes me feel like a loser, I'm sad about it. Five years is a long time!!!

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 00:37:17 GMT

Been there and know exactly how your feeling, hang in there you'll get thru it...

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 00:40:12 GMT

Know that you are not alone and that you are starting over to be better than before now that you have found this forum to inform you along the way.

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 03:04:48 GMT

Nikey,

Been there too, so I really do know how you feel. It is a terrible, demoralizing feeling that you have right now, but it does get better. You have taken the first step to regain control of your financial house and sooner than you think, things will improve. Keep your head up and stay positive. Just take baby steps for now and let time pass...it really does heal all wounds.

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 13:19:55 GMT

I understand how you feel and your not alone. We filed ch 13 in 2004. We had about $70,000 in credit card debt. We just could no longer manage to pay everyone every month without just switching things around. It is a terrible feeling, but it will get better. We just got discharged last month. We were actually offered cc while in bk. My husbands credit has recovered better than mine, but I know it will get better. Don't give up and let it get you down to much. Your not alone, there are a lot of us out there with you going through the same thing. Good Luck.

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 14:00:09 GMT

It definitely hurts your pride, but as everyone stated time will make a big difference. After I filed Ch7, I did not want ANY credit, but I learned the hard way that some credit after bankruptcy is better than none. There are cc's that you can get, secured and nonsecured. You're facing higher interest rates and possible higher annual fees (just do the research) but again, some credit after bankruptcy is better than none. Also, with a 13 since you are still paying the creditors, after 5 years your score may be much better than you think it will be.

Just hang in there and move forward one step at a time AND don't loose your focus (better credit). This forum is a great tool to help with that.

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 18:05:41 GMT

Nikey, you're shorting yourself. Who said it had to be five years? Sure, it'll take that long if you make the minimum monthly payments. But if you will sit down and think this through, your mind will open up to all sorts of possibilities. Extra income. Another job. A better job with more income. Sell everything you don't truly need and keep only family heirlooms that touch your heart everyday. Stuff is just that: stuff. Find cash everywhere you can. Aluminum, copper, steel, etc... take it all to a salvage yard. Go crazy saving your spare change. You can do this and be finished EARLY. Much earlier than 5 years. And when you're done, start by rebuilding your credit AND changing your credit habits. We're all responsible for where we are financially, good and/or not so good. Go get em, and don't string this out for 5 long years. Let us know how you're coming along.

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 19:19:57 GMT

I did it a long time ago. around 1990. I was young, stupid, and took the wrong advice. I was 21 years old, and only 12 grand in credit card debt. I think the Attorney was money hungry.

I felt awful and still do. But, it is just a chapter in your life and eventually things will get better.

I don't know your situation or why you filed. If it was medical bills, divorce, high credit card debt or all of the above. But hang in there!!!

I wouldn't say your credit will be at a "stand still" for five years. You probably can still get credit cards, cars, and homes. It just won't be at a "good" rate. One thing you want to be careful about is don't let it happen again. In the next few years once your credit slowly improves, you will slowly be able to get credit cards. If you aren't careful you will get one credit card here, one credit card there, and eventually you will have a dozen cards with balances.I done it.. I maxed out my credit lines AGAIN last year. Dozen credit cards, two homes, two new cars. Luckily my wife and I have good jobs to fix our situation.. I have to live on a shoestring budget right now to pay everything back in the next few years.. LOL.. I guess I was still young and stupid.

I hope when I am out of this mess, I can help others. Credit Cards and money managment is never really something you learn in school. If your parents have bad money managment skills, chances are you will too.

My advice right now is read the message forums. Get ideas, come up with a budget or a plan to prevent this from happening again. You can look at the bankruptcy as "Debtor's Prison". Look at it as a fresh start, and a learning experience.

Don't let society fool you. In most 3rd world countries there are no credit cards or credit. In this country you probably need a credit card to rent a motel room, rent a car, buy airline tickets.. But for the most part credit cards are not needed. If you have a budget or plan in place you shouldn't need a credit card for most emergencies. I say that loosely because I had a few friends who lost homes in Hurricane Katrina. They REALLY needed the credit card to get temporary housing, motel stays, and clothing till FEMA money kicked in.

Re: Just filed BK 13/feel terrible

Anonymous — Tue, 12 Jun 2007 21:16:36 GMT

Credithawk...

Our lawyer told us if we paid it off early we would have to pay all of our creditors in full...Is that not true??

Thanks!

Re: Just filed BK 13/feel terrible

Anonymous — Wed, 13 Jun 2007 00:23:56 GMT

Don't know about that, Nikey. That doesn't sound right. Your creditors want you to pay a smaller, settled balance over 5 years, but they won't allow you to pay that same smaller, settled balance earlier? I think I'd have your attorney show you that in writing and if he does, I think I'd get a second opinion from another attorney. It just sounds wrong. All wrong.

Re: Just filed BK 13/feel terrible

Anonymous — Wed, 13 Jun 2007 00:29:02 GMT

If it IS true about not paying it off early, then perhaps you should consider paying your creditors 100% with an increase in income. First, don't beat yourself up about being in Ch. 13. It's already hard enough. You need to be kind to yourself and realize that there's hope for tomorrow. Knowing that, I challenge you... no, I DARE you to rethink your sense of value to a potential employer and start looking to greatly increase your income. If you will do that, it will change everything for you.

Re: Just filed BK 13/feel terrible

Anonymous — Wed, 13 Jun 2007 01:01:43 GMT

Nikey, I think what your lawyer was referring to was if you want to complete the plan before the actual time. For example, if the repayment plan is 5 years, then basically, you pay the trustee whatever amount determined for the next 5 years. If you are not in a 100% repayment plan, then the trustee determines what creditor gets what amount and when they get it. For instance, if you have a plan that stipulates you pay say 60% of your obligations then that 60% is divided over the 5 years; however, the trustee may decide to pay the entire 60% obligation that you would owe to Citibank [for example] in the first year. The next year, he/she may pay 3 other creditors and so on. The creditors are bound by the terms of the BK and they get what they get. After the plan is completed, if they were scheduled to get 60% of their balance, that's it. Done. But, if you try to complete the plan early, someone may not get paid their full 60%, or several creditors may not get what was actually stipulated in the plan. Then you would be responsible for the full payment to all of your creditors. You can, however, complete the plan earlier, however, it does require permission from the court and a change in payments to the trustee to make sure each creditor gets what they were promised at the inception of the plan. At least that is the way I understood it [before the new changes]. Anyway, since you already filed the 13, you might as well continue as planned, take the initial hit and move on from there. Seriously, after a year or so with good payments to the trustee, your credit will rebound. The worst thing you can do is fail to make payments and have the 13 dismissed. That is a nightmare, and I know from personal experience. Then all of the creditors come back at you with the force of an F5 tornado....and if you really want to see your credit score tank....well, you can imagine.

Re: Just filed BK 13/feel terrible

Anonymous — Wed, 20 Jun 2007 12:46:19 GMT

Just be careful on how BIG your payments are. I am in a 3 year chapter 13 and I paind the given amount but insyed of even month I paid in twice a month for 3 months then w/ 4 months left I paid it totally off with $ from my saving. I recieve a questioning letter from the bankriptcy people askign were I got the $. They wanted to make sure that I wasn't screwing over the creditors. One point to not is that I field under the OLD bankruptcy laws and they only made me pay 20% of my debt so if I could have afforded mor they probably would have made me pay more. I just sent the response letter so we will see.

And my attourny DID tell me to pay it off, he just didn't warn me that I might screw myself (I'm crossing my fingers)

Re: Just filed BK 13/feel terrible

Anonymous — Wed, 20 Jun 2007 13:32:30 GMT

Have a look at www.lifeafterbankruptcy.com. Check out the newsletter but don't spend any money on anything (courses, books, etc.) you don't need. Good luck!

Re: Just filed BK 13/feel terrible

Anonymous — Sat, 23 Jun 2007 05:59:23 GMT

I too filed ch-13 BK in 09/2000. It was discharged five years later paid to the areement. About my fourth year, I was just tired of it and wanted to just pay it off and be done with it. My lawey, and the trustee said no because I would have to go before the judge to get it approved. They said the Judge would consider that if you had that kinf of money $3500/$4000 to pay then you could afford to pay a larger payment each month. If you have a wage increase or decrease money coming it, you are suppose to report it so your payments can be adjusted. My payments started out at a higher amount than I could afford each month, I was really struggling to make it, but it was impossible, so a family member helped me until I could get a new court date set to go back and request my payments to be reduced. The judge dropped my payment by $100.00 each month for about six months until my disability started paying me. I had to go back before the judge to report the income and my payment jumped up like $200.00 more each month. Little did I know that in the end of my BK I had to pay back the six months where my payment was lowered. That was a shocker for me-but it was only $600.00.

I am ok with it now, but like others. I felt unworthy, dirty, quility, embarrassed. You name it and I felt it, plus the fact that I was tramutized from the ordeal of getting hurt on my job, and having to go on disability. I lost my home becasue it couldn't be added in the BK because it could't be paid off in the five year time frame. My heart was filled with so much hate and anger, my self esteem hit rock bottom. So much stress...dealing with my injury and pain, the loss of my job, no income, losing my home, and the embarrassment for my self respect. I was so tramatized I had to seek medical help. I couldn't sleep, I couldn't eat my weight dropped down so much it was unhealthy.(however I did qualfy for food stamps-so I did have food). I just couldn't eat it. I was a nervous wreck, I didn't know what tomorrow would bring.

Lucky for me I did own a smaller home out in the country, so I was not left homeless. But losing my other home...all that I had paid on it and my substanial down payment was a total loss. My laweyr did contact the creditor and told them I wanted to do a volintary reprocession which protected me from any lawsuits or sued for the difference they sold to a friend for a lower price and sue me for the difference in the balance.

As time went on, I recovered some and felt better about myself and my self esteem build back up. It really wasn't my fault. Now if I had run up a bunch of bad credit and over extened myself in debt then it would have been different. So I finally accepted the fact that it was beyond my control. Being hurt and not able to work, going on disability. It was just one of those senerio's you just have no control over it, it was an unexpected event and Bk-13 was my only alternative at the time.

So back to your feeling so badly, time does heal. Things do get better even when you think they won't. As you get further along into your bk-13 you will start getting pre-approve cc's, and other credit offers. I get at least five a week, which of course I shred. I have done a pretty good job of rebuilding my credit, and once the BK-13 drops off in Sept, and all the other creditors listed in the BR are dropped, mu credit score should really improve.

So all the lemons that I have been given over these past years-I've been making a lot of lemonade. So I suffer more now with heartburn (from the lemonade-LOL) than low self esteem and unworthiness as a human being.

There is light at the end of every tunnel. So get on with your life and don't beat yourself up lke I did.

Re: Just filed BK 13/feel terrible

Anonymous — Sat, 23 Jun 2007 14:18:21 GMT

No way - no where. YOU ARE NOT A LOSER!!!! You were mature enought to take responsiblilty for your actions and I commend you for that. Yes it will be tough, but with a little time and a little persistence you will see the light again with a much cleaner profile and the world in front of you. Besides, I have known several people, co-workers and the light who received credit cards and car loans after two years of BK, sometimes less. However, they are sub-prime loans but who cares because it spends the same and gives you a chance to rebuild. KEEP THE FAITH. YOU WILL COME OUT ON TOP.

Re: Just filed BK 13/feel terrible

Anonymous — Sat, 23 Jun 2007 14:47:12 GMT

Is it possible to aquire a secured cc while you are in BK to start the clock ticking on a good account? Are you prevented from doing this somehow because of the BK ?...anyone

Re: Just filed BK 13/feel terrible

CaptainConcorde — Sat, 23 Jun 2007 22:36:56 GMT

You are not a loser because you filed BK so don't think of yourself like that. Have some self respect for yourself and realize you took the way out you had to in a difficult situation. You have a bright future to look forward too and while it will take a few years it is possible to rebuild from BK.

Most importantly believe in yourself. Have a positive attitude and recognize there is a light at the end of the tunnel. Sure you're down at the moment but you'll come back just fine with a little hard work.

ErikArizona

Message Edited by ErikArizona on 06-23-2007 03:36 PM