cancel
Showing results for 
Search instead for 
Did you mean: 

Couple months away from filing Ch7

tag
LadyCupcakes
Established Member

Couple months away from filing Ch7

While I'm gutted having to file, I came to the realization that I could no longer afford my debt. Much of it was a carryover from my former marriage (having to use CC during the ex's frequent periods of un- or under-employment) and getting a new place that raised my housing expenses 50%, along with a bout of depression in which I allowed myself to spend needlessly.  In the end I've got ~$24k of credit card debt and $7k for a personal loan with Upstart. I'll be burning AmEx, Citi (DC, Rewards+, and Costco), BOA, Synchrony (Amazon, PayPal, and CareCredit), Kohls, Comenity MC, Discover, CapOne, Elan, and BECU. I'm most heartbroken about losing the Costco and Elan Max rewards; the rest I'm pretty ambivalent towards.  But I can say seeing all the late payments is killing me right now.

 

Middle of March will be my second meeting with my lawyer to finalize paperwork. I imagine May will be the 341 meeting.

 

I plan to follow to Ch7 to 700 guide on here, as well as recognizing for myself that I do better with fewer cards.  I have a car loan that I'll be reaffirming (plus it has a killer rate of 5.9%) and have bank accounts with Ally, Chase, PenFed, and NFCU. I'm thinking of starting with either a $500 OpenSky or NSecure card. I'd love to get the US Bank secured MaxCash card too. We shall see though. Regardless, I don't plan on doing anything until after the discharge.  

 

Advice is always appreciated.  Mainly I felt like documenting the journey as I've seen others do.  

BK Ch7 Filed 3/24/2023 ; Est Discharge Date: 6/23/2023
FICO Scores as of 4/19/2023: EX-559, TU-459, EQ-487

FICO Scores as of 6/17/2023: EX-573, TU-551, EQ-615
Car loan with a 5.9% APR reaffirmed
Burned Cap1, Citi, Amex, Synch, Commenity, BOA, Mercury, Discover, Upstart.
Message 1 of 19
18 REPLIES 18
Rogue46
Established Contributor

Re: Couple months away from filing Ch7

Filing is never an easy decision but I can tell you once you walk out of that meeting and realize you now have a clean slate it's a good feeling and a mighty burden off your shoulders. Good luck to you!





Message 2 of 19
SweetCreditObsession
Valued Contributor

Re: Couple months away from filing Ch7

You'll get through it with flying colors! I went through mine with no idea that these forums existed so I damaged my credit post Ch7 and had to take a long, arduous journey to recover. Take 💙 , you're ahead of the game!

 

Best wishes 😀



(+102) | (+106) | (+151)
| TU Fico 9: ? | Exp Fico 9: ? | EQ Fico 9: ?| EQ Fico 8 Bankcard: TBA

Initial Goal: Min. 740 w/all CRAs - Met
Interim Goal: 780 w/all CRAs - Met
Current Goal(s): Min. 800 w/all CRAs
Gardening Until: ??/??/202?| Last App: 10/20/2023





Message 3 of 19
LadyCupcakes
Established Member

Re: Couple months away from filing Ch7

Follow up #1: Filed 3/26/2023. Feels good to know I've got a reset button. After discussing rebuild timing with my attorney, she said I'm good to go for a secured credit card anytime after the filing. So I transferred $500 to my NFCU savings to get the nSecured later this week. Stay tuned for those results.

 

Followup #2: 3/28/2023

I know it's just Credit Karma but this morning I got notice of a score increase on my Transunion- 374 to 611. I had 18 late payments, 108% credit balances, and one collection. Now it's showing all my cards at 0%  except the BOA which has 14% usage, and no collections or lates. Very weird. I know to take all this with a grain of salt but it's making me hopeful in my financial reboot. 

BK Ch7 Filed 3/24/2023 ; Est Discharge Date: 6/23/2023
FICO Scores as of 4/19/2023: EX-559, TU-459, EQ-487

FICO Scores as of 6/17/2023: EX-573, TU-551, EQ-615
Car loan with a 5.9% APR reaffirmed
Burned Cap1, Citi, Amex, Synch, Commenity, BOA, Mercury, Discover, Upstart.
Message 4 of 19
FireMedic1
Community Leader
Mega Contributor

Re: Couple months away from filing Ch7

Wait until 30-45 days after DC. Check all 3 reports on anualcreditreport.com. Once all accounts show IIB and $0 Balance. You'll see a score rise. Wait till then.Theres no rush. Higher scores. better rebuild cards.


Message 5 of 19
TRC_WA
Senior Contributor

Re: Couple months away from filing Ch7

@FireMedic1 wrote:

Wait until 30-45 days after DC. Check all 3 reports on anualcreditreport.com. Once all accounts show IIB and $0 Balance. You'll see a score rise. Wait till then.Theres no rush. Higher scores. better rebuild cards.


@FireMedic1  @LadyCupcakes 

 

This is true... I have a friend who filed Ch 7 last summer and was discharged a few months ago.  I told her to wait to apply for anything until I give her the OK.  She's not very credit educated (obviously) and I told her that I am full of useful info thanks to these forums.  

 

She did register here and I told her to begin by reading up on all this rebuilding stuff that you find here.  We also pulled her reports and her highest score is like 640 but her other 2 are in the high 500's... and it appears to be because she has some accounts still reporting CO instead of IIB.  We will correct that before applying.

 

On a brighter note she has 0 debt and 0 inquiries across all 3 CRA's so I'm going to help her with a "strategic" rebuild.

FICO8 current as of : 2-25-24 EQ: 655 TU: 653 EX: 656
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Gold $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 6 of 19
LadyCupcakes
Established Member

Re: Couple months away from filing Ch7

Will do!


@FireMedic1 wrote:

Wait until 30-45 days after DC. Check all 3 reports on anualcreditreport.com. Once all accounts show IIB and $0 Balance. You'll see a score rise. Wait till then.Theres no rush. Higher scores. better rebuild cards.


 

BK Ch7 Filed 3/24/2023 ; Est Discharge Date: 6/23/2023
FICO Scores as of 4/19/2023: EX-559, TU-459, EQ-487

FICO Scores as of 6/17/2023: EX-573, TU-551, EQ-615
Car loan with a 5.9% APR reaffirmed
Burned Cap1, Citi, Amex, Synch, Commenity, BOA, Mercury, Discover, Upstart.
Message 7 of 19
TMDSCT
Regular Contributor

Re: Couple months away from filing Ch7

Sorry to hear you have to file BK and I'm sure you'll get plenty of advise, but IMO you shouldn't apply for anything, not even a secured card until the discharge is just over 24 months old reporting.  Best of luck on your journey back

Message 8 of 19
FireMedic1
Community Leader
Mega Contributor

Re: Couple months away from filing Ch7


@TMDSCT wrote:

Sorry to hear you have to file BK and I'm sure you'll get plenty of advise, but IMO you shouldn't apply for anything, not even a secured card until the discharge is just over 24 months old reporting.  Best of luck on your journey back


@TMDSCTThis is inaccurate again like the other thread you posted the same thing. No need to wait 2 yrs to apply for credit. Please read some more on rebuilding after BK before posting things that dont apply. Thanks.


Message 9 of 19
CH-7-Mission-Accomplished
Valued Contributor

Re: Couple months away from filing Ch7


@FireMedic1 wrote:

@TMDSCT wrote:

Sorry to hear you have to file BK and I'm sure you'll get plenty of advise, but IMO you shouldn't apply for anything, not even a secured card until the discharge is just over 24 months old reporting.  Best of luck on your journey back


@TMDSCTThis is inaccurate again like the other thread you posted the same thing. No need to wait 2 yrs to apply for credit. Please read some more on rebuilding after BK before posting things that dont apply. Thanks.


Thanks for posting this.  It is horrible advice.   

Message 10 of 19
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.