Critique My Next Plan of Action - Post Ch 7

[shavit87]

Hey, would love some critiques for my post Ch 7 plan the first year. I'll be filing for the first time next week and I want to have the best chances of success to rebuild.

While keeping an eye on my reports and disputing/correcting any inaccuracies, I plan to:

1. Obtain credit card...as last resort, get a secured card that will graduate
2. Open a loan where I have my savings or a bond acting as colleteral. Loan amount estimated to be $800-1200.
3. 6 months after first card, will apply for unsecured with Capital One (if this isn't the first one...may not be since I'm burning them)
4. 12 month mark another major card provider, likely Barclays or Discover.

The goal a little beyond 2 years is to be in a good position to qualify for FHA loan and end this paying rent nonsense.

I will likely need a new bank account, I have USAA where my direct deposit goes and I don't like hearing that they limit my internet usage, etc. So I'll gladly open a new bank account and rebuild in the process with them via a secured credit card. I'm thinking PenFed, TD Bank, or DCU. Please share thoughts or experiences regarding banking post Ch 7. Ideally my bank will allow auto refiancing futher down the line as well. I'm with Wells Fargo Dealer Services now with 12.99% APR...ouch (planning to keep auto).

Burning:

NFCU (awful, I know)
2 Capital One
Walmart Mastercard
Local Credit Union Credit Card
-
Lenders Club Personal Loan
Local Fiancer Personal Loan
Health Bill (which was paid actually by insurance)
Rent Recovery Solutions for breaking lease due to insects

I'm open minded and at this point a bit excited. I've already felt the shame, regret, doubts about filing, blah blah blah, now to just learn from my mistakes and see it it I don't repeat them as I rebuild.

[Anonymous]

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@shavit87 wrote:

Hey, would love some critiques for my post Ch 7 plan the first year. I'll be filing for the first time next week and I want to have the best chances of success to rebuild.

While keeping an eye on my reports and disputing/correcting any inaccuracies, I plan to:

1. Obtain credit card...as last resort, get a secured card that will graduate
2. Open a loan where I have my savings or a bond acting as colleteral. Loan amount estimated to be $800-1200.
3. 6 months after first card, will apply for unsecured with Capital One (if this isn't the first one...may not be since I'm burning them)
4. 12 month mark another major card provider, likely Barclays or Discover.

The goal a little beyond 2 years is to be in a good position to qualify for FHA loan and end this paying rent nonsense.

I will likely need a new bank account, I have USAA where my direct deposit goes and I don't like hearing that they limit my internet usage, etc. So I'll gladly open a new bank account and rebuild in the process with them via a secured credit card. I'm thinking PenFed, TD Bank, or DCU. Please share thoughts or experiences regarding banking post Ch 7. Ideally my bank will allow auto refiancing futher down the line as well. I'm with Wells Fargo Dealer Services now with 12.99% APR...ouch (planning to keep auto).

Burning:

NFCU (awful, I know)
2 Capital One
Walmart Mastercard
Local Credit Union Credit Card
-
Lenders Club Personal Loan
Local Fiancer Personal Loan
Health Bill (which was paid actually by insurance)
Rent Recovery Solutions for breaking lease due to insects

I'm open minded and at this point a bit excited. I've already felt the shame, regret, doubts about filing, blah blah blah, now to just learn from my mistakes and see it it I don't repeat them as I rebuild.

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#2 is unnecessary since you already have an installment loan on your car

CapitalOne may let you right back in as your first card . . they do for a lot of folks. Try the prequal after discharge once everything is reporting correctly.

Paying rent isn't always nonsense and is actually the smart move financially for many folks.  

[shavit87]

Sadly in the metro Atlanta area, for me it unreasonable to pay rent when I can cut housing expenses by almost half by buying :-( I don't really desire to be a homeowner, because I move so much, but I like my current job and wouldn't mind growing there, so if I must live here, I gotta be wiser about where my moolah goes. Greatly appreciate your input too, thank you.

[major1986]

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@shavit87 wrote:

Hey, would love some critiques for my post Ch 7 plan the first year. I'll be filing for the first time next week and I want to have the best chances of success to rebuild.

While keeping an eye on my reports and disputing/correcting any inaccuracies, I plan to:

1. Obtain credit card...as last resort, get a secured card that will graduate
2. Open a loan where I have my savings or a bond acting as colleteral. Loan amount estimated to be $800-1200.
3. 6 months after first card, will apply for unsecured with Capital One (if this isn't the first one...may not be since I'm burning them)
4. 12 month mark another major card provider, likely Barclays or Discover.

The goal a little beyond 2 years is to be in a good position to qualify for FHA loan and end this paying rent nonsense.

I will likely need a new bank account, I have USAA where my direct deposit goes and I don't like hearing that they limit my internet usage, etc. So I'll gladly open a new bank account and rebuild in the process with them via a secured credit card. I'm thinking PenFed, TD Bank, or DCU. Please share thoughts or experiences regarding banking post Ch 7. Ideally my bank will allow auto refiancing futher down the line as well. I'm with Wells Fargo Dealer Services now with 12.99% APR...ouch (planning to keep auto).

Burning:

NFCU (awful, I know)
2 Capital One
Walmart Mastercard
Local Credit Union Credit Card
-
Lenders Club Personal Loan
Local Fiancer Personal Loan
Health Bill (which was paid actually by insurance)
Rent Recovery Solutions for breaking lease due to insects

I'm open minded and at this point a bit excited. I've already felt the shame, regret, doubts about filing, blah blah blah, now to just learn from my mistakes and see it it I don't repeat them as I rebuild.

---

The first companies to give me cards after my discharge were Merrick Bank with a $700 CL that will double after my 7th payment, and OlloCard which does not have any annual fees but the limit was only $500.  I pretty much burned everyone you listed plus plenty other creditors.  Capital One finally let me back in in February (9 months post discharge).  They gave me a quicksilver with a $3,000 limited and I burned them badly ( 5 credit cards total) so they are very BK friendly.

Like you, I am trying to get my scores as high as possible so that when I hit the two year mark I can get a decent interest rate on an FHA loan.

Best of luck to you!  Please keep us updated on your progress!

[shavit87]

Your post gave me a wave of relief, thanks for the share and I'll certainly be keeping you all updated. I just got word I've finally filed as of last week. Lawyer took forever and of course scores went down...down...down.

[wa3more]

I agree with steeler, don't short change rent. One thing, it gives you flexibility. Life happens. Good friend of mine just took finance job in atlanta while his family is here in NY in a house that is about 150k under water. Besides, considering the full cost of ownership and investing the down payment on a house while you rent, in longer term, it might be a wash. Obviously, it depends on region you are in and do you have the disipline to save and invest down payment. Again, very personal choice. My friend did say he will never own again.

[shavit87]

You are right, I probably would have been open to owning a home earlier, but I didn't know where I wanted to settle down. Heck I still don't, I just hate paying rent. You guys are giving me a lot to think about for sure. Thank you for sharing your thoughts. The support in this forum and knowledge is priceless!!

[Guyatthebeach]

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@shavit87 wrote:

Hey, would love some critiques for my post Ch 7 plan the first year. I'll be filing for the first time next week and I want to have the best chances of success to rebuild.

While keeping an eye on my reports and disputing/correcting any inaccuracies, I plan to:

1. Obtain credit card...as last resort, get a secured card that will graduate
2. Open a loan where I have my savings or a bond acting as colleteral. Loan amount estimated to be $800-1200.
3. 6 months after first card, will apply for unsecured with Capital One (if this isn't the first one...may not be since I'm burning them)
4. 12 month mark another major card provider, likely Barclays or Discover.

The goal a little beyond 2 years is to be in a good position to qualify for FHA loan and end this paying rent nonsense.

I will likely need a new bank account, I have USAA where my direct deposit goes and I don't like hearing that they limit my internet usage, etc. So I'll gladly open a new bank account and rebuild in the process with them via a secured credit card. I'm thinking PenFed, TD Bank, or DCU. Please share thoughts or experiences regarding banking post Ch 7. Ideally my bank will allow auto refiancing futher down the line as well. I'm with Wells Fargo Dealer Services now with 12.99% APR...ouch (planning to keep auto).

Burning:

NFCU (awful, I know)
2 Capital One
Walmart Mastercard
Local Credit Union Credit Card
-
Lenders Club Personal Loan
Local Fiancer Personal Loan
Health Bill (which was paid actually by insurance)
Rent Recovery Solutions for breaking lease due to insects

I'm open minded and at this point a bit excited. I've already felt the shame, regret, doubts about filing, blah blah blah, now to just learn from my mistakes and see it it I don't repeat them as I rebuild.

---

Hey there! Being in Atlanta, you have some really good options available to you.

Since you're going to burn Navy Federal, you have some great CU's in your area, like Delta Community CU, Georgia's Very Own, and Kenetic FCU. All are more conservative in underwriting but all are bankruptcy friendly. Also take a look at PENFED.

There is no need for another installment loan if you are going to keep your car.

Also I would continue to rent while you can. 

Good luck and remember we all have been in your shoes.