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BK 13 discharged (again)

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TRC_WA
Senior Contributor

Re: BK 13 discharged (again)


@Guyatthebeach wrote:

TRC_WA,

 

Congratulations on the rebuild! That is some outstanding work you have done.

 

I can only speak on my personal experience with American Express. I was after to preapproved 61 after filing chapter 7.  I don't remember seeing any approvals sooner than 61 months post chapter 13 bankruptcy . 

Guyathebeach


Thanks a lot!  

 

I'm super excited to be back with Amex... really glad I didn't burn them but yes... it was over 64 months or so after filing.  I had no idea that was how it worked but I read that here after the approval.

 

At any rate... I am not doing any more CC apps..  My INQs are already low and I have the new PenFed and Amex cards to go with the other accounts I've had open for the last 12-24 months.  

 

Nothing else to do now but sit back and wait for the baddies to fall off in the next 20 months... or sooner with EE.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 21 of 43
user365735
Regular Contributor

Re: BK 13 discharged (again)

So you qualified for chapter 7 the first time but choose 13 to keep your assets?? Trying to understand how all this works. 

Message 22 of 43
TRC_WA
Senior Contributor

Re: BK 13 discharged (again)


@user365735 wrote:

So you qualified for chapter 7 the first time but choose 13 to keep your assets?? Trying to understand how all this works. 


I really don't know if I qualified for Ch 7 because I was wanting to keep the assets (new cars) from the start.  The costs involved with doing that made sense to me... as an example the Ch 13 I filed in 2017 I had a plan payment of about $800 a month.

 

Prior to filing my car payment was $630... so the difference was an additional $170 per month to file a 13... keep the car and be done in 5 years and debt free with clean credit reports in 7 years instead of 10 years.  So I did that... and the attorney fees were included as part of that $800 a month.

 

Had I done a 7 (assuming I qualified) I'd have had to give the car back... pay the lump sum up front for the attorney... had the derogs on my reports for 10 years... and be looking for a replacement car.

 

$170 extra a month to keep what I had just made more sense.

 

Also... the Ch 13 allowed for a pretty solid rebuild.  Look at my sig below... I was just discharged 2 months ago and already have a nice lineup of cards that I started acquiring in 2018 as well as a new car that I got a week after discharge.  I doubt it would have been this easy had I filed a Ch 7.  I am of the opinion that creditors look more favorably at a Ch 13 because at least some effort was made to pay back the debts... and the reward for doing that is the derogs coming off the reports 3 years earlier as well.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 23 of 43
user365735
Regular Contributor

Re: BK 13 discharged (again)

It does seem like a win win for you. I might have some IRS taxes due. Can that be a chap 11? Would it be better to do that with a chapter 11 or a payment plan with the IRS? I do have some assets but my lawyer says I qualify for chapter 7

Message 24 of 43
TRC_WA
Senior Contributor

Re: BK 13 discharged (again)


@user365735 wrote:

It does seem like a win win for you. I might have some IRS taxes due. Can that be a chap 11? Would it be better to do that with a chapter 11 or a payment plan with the IRS? I do have some assets but my lawyer says I qualify for chapter 7


I have no idea if you can even discharge federal taxes in a BK... but I know you can set up a tax payment plan with the IRS.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 25 of 43
TRC_WA
Senior Contributor

Re: BK 13 discharged (again)

Paid one of my cards off and TU jumped 646-650.  

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 26 of 43
CornChipPaws
Established Member

Re: BK 13 discharged (again)


@TRC_WA wrote:

@user365735 wrote:

So you qualified for chapter 7 the first time but choose 13 to keep your assets?? Trying to understand how all this works. 


I really don't know if I qualified for Ch 7 because I was wanting to keep the assets (new cars) from the start.  The costs involved with doing that made sense to me... as an example the Ch 13 I filed in 2017 I had a plan payment of about $800 a month.


I've heard you have to be approved to reaffirm a loan .. not sure how accurate that is... but I have $15,000 equity in my car and im keeping it no problem. Though im a deadbeat and had no other exemptions to pay claim on lol other than a teeny $7,000 401k. I'm sure that changes if you have actual property and savings. 

Message 27 of 43
TRC_WA
Senior Contributor

Re: BK 13 discharged (again)


@CornChipPaws wrote:

@TRC_WA wrote:

@user365735 wrote:

So you qualified for chapter 7 the first time but choose 13 to keep your assets?? Trying to understand how all this works. 


I really don't know if I qualified for Ch 7 because I was wanting to keep the assets (new cars) from the start.  The costs involved with doing that made sense to me... as an example the Ch 13 I filed in 2017 I had a plan payment of about $800 a month.


I've heard you have to be approved to reaffirm a loan .. not sure how accurate that is... but I have $15,000 equity in my car and im keeping it no problem. Though im a deadbeat and had no other exemptions to pay claim on lol other than a teeny $7,000 401k. I'm sure that changes if you have actual property and savings. 


I know of people filing Ch 7 and reaffirming their loan to keep their assets... I get it.

 

My attorney said Ch 13 was the way to go... and I'm pretty sure it had something to do with my yearly income as well.  It was really not a huge deal to me either way.  The Ch 13 payment was something like $250 per month on top of the car payment amount I would be making anyway.

 

Big deal... and I'll be rewarded next year when the public record and derog accounts all fall off my reports... 7 years after filing instead of 10 years that is the standard with a Ch 7.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 28 of 43
TRC_WA
Senior Contributor

Re: BK 13 discharged (again)

TU up 2 more pts today... 

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 29 of 43
CornChipPaws
Established Member

Re: BK 13 discharged (again)

Honestly, I would have preferred ch13, too. I don't know why my atty was so against it. He just kept saying 3 years shaved off is not worth losing $15,000 of cash payments I could save instead but I know personally I would have preferred 7 years vs. 10. Maybe it's because I just don't have much worth to my name so it wasn't worth paying that forward? Idk. Maybe the court will decide I need to do 13 anyways! :-) 

Message 30 of 43
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