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1 year Post Bankruptcy Update

Phoenixupward
Regular Contributor

1 year Post Bankruptcy Update

It’s been 1 yr since my bankruptcy discharge.  I have been ghosting this forum for quite sometime and I believe it’s time to give some advice.  First I would like to thank everyone for their insight and positive energy, especially Firemedic1, you are truly awesome.

 

I filed for bankruptcy due to job loss during the height of the recession.   I was earning over 100k a year, had a nice savings, beautiful living quarters, etc.  I live in the Northeast, Mid Atlantic where the cost of living is exorbitant but my salary had compensated me quite well and gave me the financial power I needed.  Well, when one loses a job it can create a domino effect that continues to spiral.  I could not find a job that could replace my former income.   So, I took this job just to have health coverage.  My rent was 1500 per month. So I had to move to where I currently reside. So here’s my post bankruptcy journey:

 

Filed 4.18

Discharge 7.26.18

Cost: $450.00 (yes, I have a legal service plan deducted from pay each week that costs a little over $10.00 per month)

 

I was so turned off by debt that I was happy living on cash.  I managed to save a lot of money making less.

 

9.2018 - Blaze MC - 1.5k now 2k

10.2018 - overstock - 250

10.2018 - Milestone- 300

11.2018 - Kohl’s - 300 now 700

12.2018 - cerulean- 750 now 1.05k

01.2019 - Navy Federal - 2k

01.2019 - GM Financial 2015 BMW Financed 9k @ 12%.  Payment is $223.00 per month.  I put down a hefty down payment.  I was not in the market for a car.  An uninsured drunk driver hit my parked car as well as others and it was deem a total loss.  Smh.  I will be paying off this debt in 2 months.  I already have student loans reporting as part of the installment mix.

04.2019 - Ollo - 800 now 2.1k

04.2019 - Nordstrom - (TD Bank is my main bank) 500

04.2019 - Discover it - 1k

07. 2019 - PayPal Credit - 3.05k

07.2019 - Target - 300

08.2019 - Cap 1 - 2k (did not prequalify, cold apped)

08.2019 - TD Cash Reward (secured)- 5k.  I like this card a lot.  Will graduate in 6 months.

08.2019 - Boscov’s- 500

08.2019 - Discover Chrome - 2k

09.2019 - Bergdorf’s- 750.  I wanted this card baaaad.

 

Joined the following credit unions:

NASA

Bethpage

PenFed

Navy Federal- Granddad was an Army Veteran but he had passed away.  Sent them corresponding documents to verify his service.  Love this credit union.

Ocean Financial-Love this one as well. Very homey appeal.

 

Current Scores:

TU - 668

EQ - 651

EX - 657

Inquiries -too many.   Car shopping.

Goal - 700 by 7/2019

Current utilization- 1 percent.  PIF BABY!

Waiting for my accounts to age.  

Burned almost everybody - chase, cap 1, synchrony, comenity, Wells Fargo, web bank, credit one, merrick.   

 

I’m glad I closed my Amex gold card and paid it off way before I bottomed out.  4 years and counting.

 

Cash is always king. Cash is like a loving spouse. Treat cash well and it will be with you during good times and bad times.  I have access to 20k in various accounts.   I earn very little for now.  Have a nest egg.

 

Credit is like a mistress.  If you can’t pay for the upkeep, credit will turn on you.

 

So I hope that I’ve encouraged others to know one can bounce back from BK.

If anyone has any advice for me, please share.

Message 1 of 10
9 REPLIES 9
FireMedic1
Super Contributor

Re: 1 year Post Bankruptcy Update


@Phoenixupward wrote:

It’s been 1 yr since my bankruptcy discharge.  I have been ghosting this forum for quite sometime and I believe it’s time to give some advice.  First I would like to thank everyone for their insight and positive energy, especially Firemedic1, you are truly awesome.

 

I filed for bankruptcy due to job loss during the height of the recession.   I was earning over 100k a year, had a nice savings, beautiful living quarters, etc.  I live in the Northeast, Mid Atlantic where the cost of living is exorbitant but my salary had compensated me quite well and gave me the financial power I needed.  Well, when one loses a job it can create a domino effect that continues to spiral.  I could not find a job that could replace my former income.   So, I took this job just to have health coverage.  My rent was 1500 per month. So I had to move to where I currently reside. So here’s my post bankruptcy journey:

 

Filed 4.18

Discharge 7.26.18

Cost: $450.00 (yes, I have a legal service plan deducted from pay each week that costs a little over $10.00 per month)

 

I was so turned off by debt that I was happy living on cash.  I managed to save a lot of money making less.

 

9.2018 - Blaze MC - 1.5k now 2k

10.2018 - overstock - 250

10.2018 - Milestone- 300

11.2018 - Kohl’s - 300 now 700

12.2018 - cerulean- 750 now 1.05k

01.2019 - Navy Federal - 2k

01.2019 - GM Financial 2015 BMW Financed 9k @ 12%.  Payment is $223.00 per month.  I put down a hefty down payment.  I was not in the market for a car.  An uninsured drunk driver hit my parked car as well as others and it was deem a total loss.  Smh.  I will be paying off this debt in 2 months.  I already have student loans reporting as part of the installment mix.

04.2019 - Ollo - 800 now 2.1k

04.2019 - Nordstrom - (TD Bank is my main bank) 500

04.2019 - Discover it - 1k

07. 2019 - PayPal Credit - 3.05k

07.2019 - Target - 300

08.2019 - Cap 1 - 2k (did not prequalify, cold apped)

08.2019 - TD Cash Reward (secured)- 5k.  I like this card a lot.  Will graduate in 6 months.

08.2019 - Boscov’s- 500

08.2019 - Discover Chrome - 2k

09.2019 - Bergdorf’s- 750.  I wanted this card baaaad.

 

Joined the following credit unions:

NASA

Bethpage

PenFed

Navy Federal- Granddad was an Army Veteran but he had passed away.  Sent them corresponding documents to verify his service.  Love this credit union.

Ocean Financial-Love this one as well. Very homey appeal.

 

Current Scores:

TU - 668

EQ - 651

EX - 657

Inquiries -too many.   Car shopping.

Goal - 700 by 7/2019 2020?

 

Current utilization- 1 percent.  PIF BABY!

Waiting for my accounts to age.  

Burned almost everybody - chase, cap 1, synchrony, comenity, Wells Fargo, web bank, credit one, merrick.   

 

I’m glad I closed my Amex gold card and paid it off way before I bottomed out.  4 years and counting.

 

Cash is always king. Cash is like a loving spouse. Treat cash well and it will be with you during good times and bad times.  I have access to 20k in various accounts.   I earn very little for now.  Have a nest egg.

 

Credit is like a mistress.  If you can’t pay for the upkeep, credit will turn on you.

 

So I hope that I’ve encouraged others to know one can bounce back from BK.

If anyone has any advice for me, please share.


Welcome to the forums. Nice recovery. Hope the apps have stopped now. And let these age. 12 in 12 months is a haul. Garden time! Once all the inq's fall off in a year and responsible use. 700 is in reach. Good Luck!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery @ 540's.
Message 2 of 10
Phoenixupward
Regular Contributor

Re: 1 year Post Bankruptcy Update

Thank you.   I’m  letting my accounts age.  No more apps.  I want to get rid of milestone and cerulean as I don’t use them but they are my oldest newest accounts.   My mileage is on my 2 discover cards, cap 1, navy federal, TD bank cash and occasionally blaze and ollo.  Should I close the two aforementioned cards now or keep them for another year?   

 Yes,  in 2020 700 club

Message 3 of 10
FireMedic1
Super Contributor

Re: 1 year Post Bankruptcy Update

If they have annual fees. Close them in month 11 before the fees hit. Glad to hear you've stopped apping. Ya got more than enough to rebuild for now. Good Luck!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery @ 540's.
Message 4 of 10
Back2Reality
Frequent Contributor

Re: 1 year Post Bankruptcy Update

Wow congrats!

I’m a year behind you... but I was wondering what your scores were right after DC when you applied for your first cards. I’m curious if that made a difference for your apps. Thanks!



Recent INQs:




GOALS 2021:
• [___] $75k revolving CL
• [___] Apple Card (too sexy not to have)
• [___] AZEO enforced
• [___] Build Emergency fund to 2x monthly
• [___] FICO 8 670: [___]EX [___]TU [__X__]EQ
Message 5 of 10
Phoenixupward
Regular Contributor

Re: 1 year Post Bankruptcy Update

I don’t know my exact scores from the onset as I did not care but Blaze was my first preapproval via snail mail as my initial SL was 1.5k that was September 2018.    So, I assume that my scores were in the low 600s.   I did not find out about the Fico community until months later and I decided  to see what is exactly on my credit report.   I pay for monthly reporting with scores with TU now and plus NASA federal gives me my Experian scores Fico 9 as well as Navy Federal Equifax Fico 9.  I really think what jumpsrted my recovery are my student loans which I have paid faithfully  and/or in deferment.  This community has been so helpful to me.  You are off to a great start.  Discover is great.  Blaze will give you an increase around the 6 month.  You will receive a letter via snail mail.   I’m probably due for another increase soon. Keep your utilization at 1 percent.   Join a credit union.  You don’t need a lot of money to join.  Credit unions have helped me save money.  I haven’t rebounded from my income but I’ve learned to manage my money better with far less.   If you don’t mind, who did you burn?    Good luck on your  recovery 🙂

Message 6 of 10
twono
Frequent Contributor

Re: 1 year Post Bankruptcy Update


@Phoenixupward wrote:

I don’t know my exact scores from the onset as I did not care but Blaze was my first preapproval via snail mail as my initial SL was 1.5k that was September 2018.    So, I assume that my scores were in the low 600s.   I did not find out about the Fico community until months later and I decided  to see what is exactly on my credit report.   I pay for monthly reporting with scores with TU now and plus NASA federal gives me my Experian scores Fico 9 as well as Navy Federal Equifax Fico 9.  I really think what jumpsrted my recovery are my student loans which I have paid faithfully  and/or in deferment.  This community has been so helpful to me.  You are off to a great start.  Discover is great.  Blaze will give you an increase around the 6 month.  You will receive a letter via snail mail.   I’m probably due for another increase soon. Keep your utilization at 1 percent.   Join a credit union.  You don’t need a lot of money to join.  Credit unions have helped me save money.  I haven’t rebounded from my income but I’ve learned to manage my money better with far less.   If you don’t mind, who did you burn?    Good luck on your  recovery

 

🙂

 

 

 

 

 

These bits of advice you give are spot on as to how i am approaching my new financial life....Filed toward end of June so i'm getting close.

 

You mention your student loans helping you post BK....I have co-signed for about $40k in student loans for my daugher.  They are still in deferment, this is her last year of 5 yrs.  I'll assume those will help me in my rebuild in a round about way?

 

I also know that i will be able to save a lot of money.  Single guy, cheap rent/no mortgage, no vehicle loans, nothing.  

 

I opened 2 new checking accts ( i had about 12 checking/savings with banks and CU's prior to filing).  One with a large-ish local bank and a local CU.  I researched them to see if they offered secured CC's before i chose them, and they do.  Also, the CU i joined, has a relationship with a particular home builder that i have been in contact with already.  Can never be too prepared or plan too far ahead, right?

 

Living on a debit card for the last 3 months has been an eye opener.  And i must say that the BK classes you had to take really did bring me back to reality and a lot of it has stuck with me....especially the budget thingy.  Smiley Happy

 

I wish i wouuld have filed 18 months sooner, instead of smacking my 401k for well over $100k to try to get ahead of this mess i created.

 

The point of my reply is that i feel like im on the same single brain wave with you as to how you handled your situation and how you're looking forward.

 

P.S.  I wouldn't close ANY accts unless they have an AF as mentioned.  No sense in closing them.  Just let them age even if you don't use them.  But then again, they will report for 10 yrs even if you do close them.

 

 

 

 

 


 

Message 7 of 10
Phoenixupward
Regular Contributor

Re: 1 year Post Bankruptcy Update

Thank you so much for the words of encouragement.  And yes, student loans will help even if they are in deferment.  They will start reporting as current but in deferment.  The student loans will serve as part of your installment mix.  In my opinion, student loans are looked upon as potential earning power as well as a long term investment that an individual will continue to meet their financial obligation.   As much as I don’t like having student loans, they have helped my age of accounts.  

 

I still use my debit card regularly although  I have credit availability.  Plus, I like the feel of cold hard cash.   Holding a wad of 100 dollar bills , gives me a great feeling.  One needs to have a healthy relationship with money.  One needs to feel the energy of money.  One needs to be able to look at their investment accounts and see positive fluctuations.   Filing for bk was a freeing experience but also a valuable lesson to learn.  When I was inundated with debt, I was so unlucky.   Everything was breaking down including myself physically.  Now, I have a different mindset. I’m not a gambler but once in awhile I’ll buy a scratch off and i will win 300 dollars (May 2019).   So those who have money, attract money. Those who are drowning in debt will only attract more debt.   So there’s definitely a correlation between money and one’s psychological  perception regarding it.

 

Like you, I live a simplistic life and it’s hard when you live in a city that is known for its wealth and status.  But although my friends from college make outrageous money, they are in debt.  I make far less than they do but I have more liquidity and I have the best liquid asset which is cash.

 

So continue to live simplistically and save your money.   Open savings and money market accounts.  Once you reestablish your credit, use your credit cards the same way you would use your debit card.  Break everything down into needs and wants.   One needs housing, utilities, food, clothing, toilet paper, household supplies, laundry supplies, toiletries, etc.  We should not allow ourselves to be distracted by the media and especially reality tv to determine our needs and wants. 

 

Again Good Luck Godspeed 

 

 

Message 8 of 10
Phoenixupward
Regular Contributor

Re: 1 year Post Bankruptcy Update

Do not have any regrets.  You will get back that 100k and more.  I exhausted all my financial resources. Cleaned out several accounts.  It may take some time to recoup but I’m well on my way as well as you.  Just stay positive.  

Message 9 of 10
Justme79
Frequent Contributor

Re: 1 year Post Bankruptcy Update

@Phoenixupward - Congratulations on the quick rebuild!  @Firemedic1 is THE BEST!

 

Chapter 13
Date filed: 3/17/20
Meeting of the creditors (341): 5/20/20
Confirmation hearing: 6/11/2020
Deadline for filing claims: 6/17/20
Plan confirmed: 7/2/2020
Deadline for filing claims (Government): 9/14/20

Scores as of 05/08/21 (MyFICO Monthly Subscription/updates on the 8th of every month)
Equifax 666
Transunion 634
Experian 637

Open Accounts
Great Lakes (Student Loan) Pd Never Late - Perfect History/will not update until PIF $3,750 balance at $140 per month
Target (Survived Bankruptcy) Pd Never Late - Perfect History $2,300 limit/$0.00 Balance
Cartier (Survived Bankruptcy) Pd Never Late - Perfect History $8,000 limit/$0.00 Balance
NFCU Amex (AU) $25K limit/$10K balance (removing soon)
NFCU Secured Card (Trustee Approved) Card Graduated to NFCU Cash Rewards (Unsecured) $2K limit/will PIF each month before statement cuts
TD Bank Secured Card $500 limit/will PIF each month before statement cuts

All closed accounts are reporting correctly with $0.00 balance

Message 10 of 10
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