Chapter 13-Rebuilding credit

[Anonymous]

I filed chapter 13 1 year ago.  I have consistently paid my payment each month.  I bank with Wells Fargo.  Between savings, checking and cds I have about $15,000.00 in the bank.  I have tried to get a secured visa with Wells Fargo and they denied me.  I am very confused because I thought beings it was secured it would be ok...I really am trying to rebuild my credit and don't know how to start now.  I thought for sure getting a secured visa was the first step.  If anyone has any suggestions I would appreciate it.  Also, I have checked my fico with Equifax and my score is 620.

[johnsj21]

My husband filed his ch 13 in 10/2005 and started his payment plan in 5/2006 - paid on time every month.  We didn't even attempt to apply for credit for him on a CC until 10/2008 - 3 years after filing.  It might have helped that prior to that I added him as an authorized user on 2 cc's of mine with a long history.  He was able to be a co-applicant on a car loan wih Chrysler Financial in June 2007 also.  He applied for the Household Bank card and was approved - no probelm in 10/2008.  It's a measely $300 limit but it's giving him some new history.

[sgtm7]

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@johnsj21 wrote:
My husband filed his ch 13 in 10/2005 and started his payment plan in 5/2006 - paid on time every month.  We didn't even attempt to apply for credit for him on a CC until 10/2008 - 3 years after filing.  It might have helped that prior to that I added him as an authorized user on 2 cc's of mine with a long history.  He was able to be a co-applicant on a car loan wih Chrysler Financial in June 2007 also.  He applied for the Household Bank card and was approved - no probelm in 10/2008.  It's a measely $300 limit but it's giving him some new history.

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HSBC appears to be bankruptcy "friendly".  I got a cc from them while still in a chapter 13. 

[Anonymous]

late to the talk but just came across your post.

i think it depends on the bank. of course if you defaulted on a cc before with wells or hsbc they will probably deny it. 

my finace did ch.13 over 2 yrs ago, he was able to get an unsecured cc about 9 mos later from washington mutual (which I believe has now become Chase) w/ a $3000 balance- go figure. we tried another cc offer in the mail that turned out to be a hsbc (looking closer at the fine print), and they declined citing that he had account with them before (that was incl in the bk). 

i've heard that best buy and wal-mart are pretty easy to get.

[Anonymous]

In my state, CH13 are not allowed to take on additional credit loads, i.e. cc's.  It is grounds for dismissal - not a fun experience.  Make sure you know what limitations your Ch13 has on new credit. 

Also - I just have to ask - what are you doing with $15,000 in the bank?  I hope I'm not out of line - but we paid every possible penney into the Ch13 - figured it really belonged to our creditors - not us.  We were allowed to keep the first $1,000 on tax returns, if I remember correctly, which gives you a small emergency cushion.

Ch. 13's will be discharged after a minimum of 36 months of payments - my perceived goal was for that 36 months every possible penney went to creditors.  After it's discharged and everything possible is paid in to creditors - then it's time for you - and you will be able to rebuild quickly.

I'm less than 6 months out of CH13BK, and my scores are in the 700's.  We have been able to rebuild quickly (and are still in the process) - but were able to concentrate on paying our creditors (even the naughty high interest high fee creditors) while in BK13. 

[Anonymous]

Well, one of the loans we claimed was a secured loan against our cd.  Instead of just taking the money and paying off the cd they put the loan in the bankruptcy..So now I have a cd and paying it off  through the trustee.  I don't know...I just did everything the lawyer told me to do...We pay $1100.00 a month to the trustee.  We are still able to save.  I could have gotten out of debt without bankruptcy but my lenders were not patient.  I was out of work and instead of working with me they worked against me. 

[Anonymous]

I'm with you pampam.  I think most people in CH13 are in very similar situations.  Good luck to you on fulfilling your ch. 13, making good to your lenders, and rebuilding your credit.