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Bankruptcy Journey

LuckyB338
Regular Contributor

Bankruptcy Journey

Hey all,

 

I'm back on the forums after two years and posting in a section I never thought I would work my way into...

 

I had to file for ch7 earlier this year (Jan 2021) and dissolve my business in the process. I've since managed to re-establish my business and save up some money. I should make it clear that I've not received the discharge but the trustee has abandoned my estate.

 

I have 30k ready to invest into secured credit cards and I burned Amex, chase, citi, and discover by filing. I really ran up my Amex trying to stay above water through the pandemic.

 

I plan on opening 2 US bank secured @5k each but I'm not sure where to go from there.

 

Can anyone pls advise me on moving forward? Anything would be greatly appreciated.

8 REPLIES 8
Jnbmom
Community Leader
Senior Contributor

Re: Bankruptcy Journey


@LuckyB338 wrote:

Hey all,

 

I'm back on the forums after two years and posting in a section I never thought I would work my way into...

 

I had to file for ch7 earlier this year (Jan 2021) and dissolve my business in the process. I've since managed to re-establish my business and save up some money. I should make it clear that I've not received the discharge but the trustee has abandoned my estate.

 

I have 30k ready to invest into secured credit cards and I burned Amex, chase, citi, and discover by filing. I really ran up my Amex trying to stay above water through the pandemic.

 

I plan on opening 2 US bank secured @5k each but I'm not sure where to go from there.

 

Can anyone pls advise me on moving forward? Anything would be greatly appreciated.


You just filed BK, but you have 30K on hand??

EXP 758 TU 783 EQ 729
Message 2 of 9
LuckyB338
Regular Contributor

Re: Bankruptcy Journey

Yeah I'm in real estate. I was able to put some money together since I have no expenses at the time other than small day to day stuff

Message 3 of 9
DebtStinks
Established Contributor

Re: Bankruptcy Journey

Just my 2 cents here, but I'd personally wait until discharge. I know that legally you can open new accounts now, but having 30k on hand (even though you said the trustee abandoned your estate) could raise a red flag or two.

 

Furthermore, IMO, US Bank is not the best rebuilder card. I'd recommend NFCU or a local CU as long as they were not burned. NFCU is well known to graduate at 6 months for a 2k credit line...or higher matching by your security deposit if it was higher than 2k.

 

Best of luck!

PenFed Visa Signature $35000 (Opened 6/20) - NFCU More Rewards AMEX (Opened 1/19) $17000 - NFCU Platinum $15000 (Opened 1/21) - Capital One World Elite MC $11200 (Opened 11/17) - TTCU Platinum Visa $10000 (Opened 10/18) - Uber Visa $5000 (Opened 1/19) - Target Store Card $2000 (Opened 10/18) - Floor & Decor Store Card $36500 (Opened 10/18)
Total CL - $131700

CH7 BK Filed 8/1/17 Discharged 11/7/17

Scores as of 2/18/21:




Inquiries Last 12 Months:
Message 4 of 9
masscredit
Valued Contributor

Re: Bankruptcy Journey


@DebtStinks wrote:

Just my 2 cents here, but I'd personally wait until discharge. I know that legally you can open new accounts now, but having 30k on hand (even though you said the trustee abandoned your estate) could raise a red flag or two.

 

Furthermore, IMO, US Bank is not the best rebuilder card. I'd recommend NFCU or a local CU as long as they were not burned. NFCU is well known to graduate at 6 months for a 2k credit line...or higher matching by your security deposit if it was higher than 2k.

 

Best of luck!


Any chance of getting back in with NFCU if they were burned? 

Message 5 of 9
AZnotorious
New Contributor

Re: Bankruptcy Journey

@masscredit NFCU would need to be made whole again/PIF before they would even consider entertaining a relationship again. Not personal experience but it seems to be a main DP regarding them.

 

As for OP, Discover, Citi, Amex, Chase will not be forgiving anytime soon. I listed them as most forgiving to least forgiving IMO. Discover for some seems to forgive randomly but as soon as 2 years after being burned from DPs here on MF. Chase will probably never forgive/depending on amount burned and other factors. I burned them for $16k so I can understand them not wanting to play ball with me ever again. To share my personal DPs to give you an idea, I burned Discover for $1200 and Citi for $2k. My discharge was March 2018. Still no dice for even a secured card. I never had AMEX but from reading other's DPs they seem to require 5years post BK to consider you and that's if you didn't burn them.

 

I'd recommend a local CU to start a relationship and pave the way for CC products down the line. Capital One would be a great place to start once your discharge is showing on your CR since you didn't burn them. They are very BK friendly even if burned in the past.

 

At the very least wait until the discharge hits your CR before considering any apps. US Bank may or may not allow you a secured card. They didn't let me after discharge despite having a checking account with them and not burning them, I never had any CCs with them.

Message 6 of 9
LuckyB338
Regular Contributor

Re: Bankruptcy Journey

Update:


Opened US bank and Disco secured 5k and 2.5k and got put on Chase, US bank, and Cap one as authorized user.

 

Score went up 110 points. Total revolving credit is at 39.5k

Message 7 of 9
Have1
New Member

Re: Bankruptcy Journey

These are just my thoughts, I hope they are useful to you:

 

I'm no guru, but I went through bankruptcy (CH7) when my business closed.  I would recommend that you settle down and plan your rebuild in a methodical way.  You should wait until your credit reports are all up to date and cleaned of errors (as much as you can) post discharge before you try adding trade lines. 

 

You do not want a bunch of hard pulls for no benefit stacking up on your reports.  You don't want useless credit lines piled up and making it harder to get useful ones.  Research your options.  Gather data.  Make a plan.  Execute that plan thoughtfully.  You will only slow your progress by rushing and jumping at things rashly.

 

Each person's credit history and profile is different.  I filed bankruptcy with no late payments, no collections and no judgements on my credit reports.  I carried open, good accounts through my bankruptcy.  My scores and my rebuild were different than someone who had been chronically behind and fighting off collectors and process servers.  That gave me different opportunities for my rebuild.  You need to figure out exactly where you are so you can make wise choices about your next steps.

 

You have to understand where you are at and form your plan forward using that information.  There is no one size fits all set of steps.  There are principles that apply to everyone.  You have to wrap your head around where you stand before you can put them to use.  Almost every thread on this forum speaks to one or more of the principles of rebuilding credit.  Read threads that seem like they may apply and think hard about the information. 

 

But, above all, do not rush yourself into a big rebuild slow-down.  There are tons of threads here where it is obvious that the root issue for the person is actually impulse control.  It both contributed to the overwhelming debt and is making the recovery that much harder for the person to pull off.  Slow down, learn, plan, then execute.

Message 8 of 9
melich
New Member

Re: Bankruptcy Journey

Jnbmom,

 

He filed a ch 7 for the business. If the trustee is giving him an RND (Report of No Distribution) then the trustee is not touching his personal assets.

Current Score: EQ8 746, TU8 745, EX8 729
Goal Score: EQ8 780, TU8 780, EX8 780
Ch 7 in 3-2012

BofA Premier 20k, BofA Cash Reward 17k, Barclay AA Red 14k, Amazon 6k, Barclay Apple 12k, Discover 18k, Apple Card 7k, Walmart 4k, CapitalOne 4k
Message 9 of 9
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