Chapter 13 Filed...What's Next?

[Anonymous]

First I want to say that I have been a "lurker" on variouso MyFico forums for years and I am grateful to everyone who shares their knowledge and experience. 

I won't bore anyone with the story leading up to my BK filing (young and stupid....bad decisions...job loss...blah blah blah.) I did a LOT of research before contacting a BK lawyer and thought I would be able to file Chapter 7. Turns out my income is too high since I don't have a spouse or kids. So Chapter 13 it is. With much trepidation I scheduled my first consultation. Turns out my lawyer is AMAZING. He's making this process as easy and judgement-free as possible. 

Since I am licsensed by FINRA for securities sales (Series 6 and 63), I never really considered bankruptcy to be an option since I am required to report any sort of compromise with creditors on my U4 (pretty much a permanent record for licesned advisors.) I assumed this would make me unemployable and possible even result in termination from my current employer. The one thing I WASN'T able to find here in the forums (or anywhere else online) was anyone that discussed their experience as a licensed advisor filing BK. I only mention this for the benefit of anyone who may stumble upon this thread and is in a similar situation. It isn't a death sentence. There is hope.

But I digress. 

I officially "filed" a week ago. I have already received some letters from a couple of lenders letting me know that they have been notified of the BK. My chapter 13 trustee payments will start this month, and I should have a court date within the next 2 months. I have some student loans that (ovbiously) weren't included in the BK as well as a revolving line at Nebraska Furniture Mart that (for some strange reason) couldn't be included because it is "secured" by my furniture (this still confuses me...I highly doubt they would "repossess" a couch.) I also have my car loan. I am a renter so mortgage wasn't an issue. Now I can reliably predict my bills for the next 60 months. Awesome.

Now I'm curious as to what my next steps should be in order to emerge from BK in the best shape possible. Should I apply for a secured credit card? Am I even allowed to do that? Will banks that I "burned" even consider giving me one? What about Federal student loans (I'm starting school again in a few months). Does this affect my ability to get services like cable and electricity in the future? 

Honestly I am looking for any experience or advice that you all care to share. I hope to provide semi-regular updates on my BK process on this forum in case it will be of value to anyone else (and also to keep myself accountable.)

Thanks in advance for your help and support!

[tooleman694]

2 things, first if you are allowed get a couple secured cards to get rebuilding now. You could come out of the chapter with really good credit if you go 60 months.

Second, try to pay it off as quick as possible and get out of it. It is a huge pain.

[Anonymous]

---

@Anonymous wrote:

First I want to say that I have been a "lurker" on variouso MyFico forums for years and I am grateful to everyone who shares their knowledge and experience. 

I won't bore anyone with the story leading up to my BK filing (young and stupid....bad decisions...job loss...blah blah blah.) I did a LOT of research before contacting a BK lawyer and thought I would be able to file Chapter 7. Turns out my income is too high since I don't have a spouse or kids. So Chapter 13 it is. With much trepidation I scheduled my first consultation. Turns out my lawyer is AMAZING. He's making this process as easy and judgement-free as possible. 

Since I am licsensed by FINRA for securities sales (Series 6 and 63), I never really considered bankruptcy to be an option since I am required to report any sort of compromise with creditors on my U4 (pretty much a permanent record for licesned advisors.) I assumed this would make me unemployable and possible even result in termination from my current employer. The one thing I WASN'T able to find here in the forums (or anywhere else online) was anyone that discussed their experience as a licensed advisor filing BK. I only mention this for the benefit of anyone who may stumble upon this thread and is in a similar situation. It isn't a death sentence. There is hope.

But I digress. 

I officially "filed" a week ago. I have already received some letters from a couple of lenders letting me know that they have been notified of the BK. My chapter 13 trustee payments will start this month, and I should have a court date within the next 2 months. I have some student loans that (ovbiously) weren't included in the BK as well as a revolving line at Nebraska Furniture Mart that (for some strange reason) couldn't be included because it is "secured" by my furniture (this still confuses me...I highly doubt they would "repossess" a couch.) I also have my car loan. I am a renter so mortgage wasn't an issue. Now I can reliably predict my bills for the next 60 months. Awesome.

Now I'm curious as to what my next steps should be in order to emerge from BK in the best shape possible. Should I apply for a secured credit card? Am I even allowed to do that? Will banks that I "burned" even consider giving me one? What about Federal student loans (I'm starting school again in a few months). Does this affect my ability to get services like cable and electricity in the future? 

Honestly I am looking for any experience or advice that you all care to share. I hope to provide semi-regular updates on my BK process on this forum in case it will be of value to anyone else (and also to keep myself accountable.)

Thanks in advance for your help and support!

---

My personal experience was that no one would even give me a secured card until after I was discharged.  I tried about 3 years in.  YMMV.  4 years in I did get approval and obtain for a car (used), so that when I was discharged about 8 months later, I had a head start.  I worked the secure card for about 6 months, then apped for a couple of others and was successful.  After 1 year the secure card transferred to unsecured, got my money back and the rest is history.  1 year post discharge, I apped for mortgage and was able to secure no problem.  I had worked my scores back into the low 700's by the last credit pull so I got a great interest rate.    As far as the school thing, I have no idea.  I paid off my student loans through the BR. 

I never had issues getting a new apartment, or utilities during my BR.

[Anonymous]

High income doesn't necessarily disqualify you from a 7. Many folks (myself included) were directed towards 13s and ended up getting in 7s. 

I would talk to another attorney or two to make sure. They make more money on 13s and some can be quick to direct you that way.

[pizza1]

If your Bk will be/is/are a Ch13, its completely different than a ch 7 as in the fact you will need to get permission for everything from the trustee (thru your attorney)....secured cards, home, new car, etc...

[Anonymous]

I too filed this week and my 341 is set for next month. I’m interested in the feedback you receive as this board and the contributors are a wealth of knowledge. I admire your positive attitude. Like you, the attitude that I am taking towards all of this is that for the next 60 months, payments would be predictable. I don’t know how much any of this could change between now, the meeting, and confirmation, but it’s a step towards getting my life back and starting anew. 

Very good question about the secured cards, utilities, etc. I’ve seen varying answers, but the one thing that seems to be consistent with all is that YMMV, and to consult with your attorney to gain a complete understanding of what is and is not allowed in your case.

I wish you well.