My rebuilding thread - ch7 BK

[Rlandon87]

Back story- I've been on the Forum since 2013.

January 2014 I lost a 95k a year job, went through a brutal divorce, and lost a family member. I had a 190k mortgage, 17k auto loan, 30k auto loan, 47k student loans, and 55k cc debt.
I was forced to withdrawal my retirement funds to make ends meet (for about 4 months) and worked two jobs. No matter how much I paid I just kept getting deeper an deeper in debt. Then the garnishment letters started rolling in, lawsuits, and liens on my property.... I've NEVER been an advocate of BK - but I now see firsthand how Important it is and how great it is to have if absolutely needed.

I filed June 28th 2016. I have my 431 this Thursday. I included all credit card debt, some tax debt, and my mortgage.

I am reaffirming on my auto loan. My question on that- the car is worth 14000, I only owe 13500. It is showing 2-30 day mates recently. Should I continue with reaffirmation? To me it's a good idea, I've heard creditors like to see reaffirmation a during BK, and the fact that I'm not upside down helps.

I've already signed up for 3 bureau monitoring. I've already read "700 in 24 months thread about 15 times"

I have a recent tax lien reporting on TU, EX. But should be removed as its legitimacy is very questionable and it was withdrawn before it was ever served. Error on courts.

I have a 6.5 year old collection reporting on EQ,EX- TU already removed early.

Unfortunately most of my CC accounts had 5 missed payments each ranging from 30-120 on all, all charged off around 01/2015. I had around 20 CC accounts in total and I burned literally EVERYONE. The only prime company I did not have was Amex.

CC Included -

Cap one- 3 cards for around12k
Discover- 1 cars for 3.5k
Citi -3 cards for 8k
BOFA- 1 card for 3k
Synchrony-5 cards for 8k
NFCU- 1 card for 15k
Comenity- 4 cards for 6k
CFNA- 1 card for 2.2k
Barclays- 1 card for 1.5k

Auto loan- BBVA , reaffirmed

Mortgage- stonegate, IIB, but staying and paying. Still in DW name for loan purposes.

Student loans- NAVIENT, FEDLOAN, 47k total no missed payments.


History- before job loss scores were 675-690 across the board with about 20 total missed payments from 2010 and a collection from 2010 reporting. Approximately 35-40 INQ across the board all due to fall off by 4/2017.

Time of filing scores sub 500 across the board.

My current scores are
EQ- 546, TU- 519, EX -538


My plan-
Get through my 431 (which I'm stressing about bigtime, I was 110% honest it's just stressful because this isn't something I've ever considered and I'm just nervous because there is so much at stake)

Update reports to display correct info up to and after discharge which is expected in October.

Week after discharge - Obtain 2 unsecured cards. Report less than 5% one one card, alternating monthly and PIF each month.

6 months post discharge- trade in car for truck (I have a small two door car and need something bigger pretty bad, I have a big family and also need a truck to haul things for work) but I'm being patient and waiting AT LEAST 6 months post discharge to allow score to increase a little.


I will update this thread with any changes, observations, questions, and anything else.

Ready to get this behind me and shoot for 700 minimum.

[Anonymous]

My recommendation (I'm not an attorney) not to reaffirm car loan. Most lenders allow you to stay in vehicle, if your not behind on loan. Meaning, once discharged from BK, you can keep your vehicle, make payments and drive.

[Rlandon87]

How does the equity work? Will I still be able to trade and use the equity

[jmclaughlin1982]

Thanks so much for the post!
Where to start....no worries about your accounts and reporting yet. In a couple weeks I'd dispute everything on your report. Ask for "confirm all information due to multiple inaccuracies." All should update with IIB notation, and I even had 3 deleted completely because they creditor wouldn't even bother to update.
As for your car, if it's a good rate and you have equity I'd keep it. You might as well save anything you have into it and the equity you have will be secured (you can keep up to a certain amount of equity in a car through BK.) that's totally up to you though. If you have a decent rate and want your account to keep reporting is reaffirm. You could not reaffirm and just "carry through" (keep making payments and they won't repossess unless you stop making payments) but this payment probably won't be reported to the bureaus. If you reaffirm you could even keep past payment history on your report, but most times it will just report like a new loan. Just make sure the reaffirmation is in your best interest, your lawyer will advise you better on this. Don't be worried about financing after dc though, I got my car the day after my dc was finalized. 17000 at 13.9%.
Finally, your 341....do not worry. Mine took literally 5 minutes (after an hour waiting for everyone else.) the trustee asked me 3-4 questions and then told me good luck with your fresh start.
Last but not least..your rebuild plan sounds great. I'd definitely hit up capital one. Do the pre qualifier and see if you qualify. Use apps sparingly as you don't want to seem desperate. I also swear by secured loans

[TXinandout]

If you are not behind on your car payment, then I wouldn't recommend reaffirmation, keep on paying and most likely they won't repossess.

After discharge you can wait until you rebuild a little and then call them to pick the car up whenever you are ready to purchase another one.

[jmclaughlin1982]

I already put my two cents in but wanted to reiterate two points.
Reaffirmation, I was told by my lawyer, makes sense in only 2 instances. 1. When you have a decent loan already and want to keep the car long term. 2. When you have equity in the car. So I'll restate that since you have equity in your car it makes the most sense to reaffirm. You could just keep the car and make payments but those payments will count as payments on your credit report. Additionally you could just keep the car and hope they don't repossess. I feel this is a sort of scam my tactic and dishonest really. To continue using something that you have no intention of keeping is wrong.
Your biggest concerns post dc are to establish trade lines and get history. Reaffirming your loan will do both. Again, consult your lawyer and find out for sure. Additionally, make sure the reaffirmation terms are in your favor.

[TXinandout]

$500 equity isn't  necessarily (IMO) a lot of equity incentive

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@jmclaughlin1982 wrote:
I already put my two cents in but wanted to reiterate two points.
Reaffirmation, I was told by my lawyer, makes sense in only 2 instances. 1. When you have a decent loan already and want to keep the car long term. 2. When you have equity in the car. So I'll restate that since you have equity in your car it makes the most sense to reaffirm. You could just keep the car and make payments but those payments will count as payments on your credit report. Additionally you could just keep the car and hope they don't repossess. I feel this is a sort of scam my tactic and dishonest really. To continue using something that you have no intention of keeping is wrong.
Your biggest concerns post dc are to establish trade lines and get history. Reaffirming your loan will do both. Again, consult your lawyer and find out for sure. Additionally, make sure the reaffirmation terms are in your favor.

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 to reaffirm, second thing is that most of the times our cars are not worth what we think, third is many banks do not report even if the debt gets reaffirmed.

Of course is a personal opinion and decision.

[Rlandon87]

My car NADA values at 16+ for its condition and miles. I was shooting it low at 14.5. I'll have anywhere from 1-2k equity in it when I trade in a few months. I have a great rate- better than I'll see post discharge.


My big question. All I keep hearing about is bank statements during 431.
My attorney and trustee haven't asked for them. My 431 is Thursday and I was only asked to bring ID, car registration, insurance and tax records.
Do they not always ask for bank statements?

[TXinandout]

For my 341 (no 431) meeting I only needed to bring my ID and SS card. Not sure if there was something else needed that I had previously provided to my attorney. 

[Rlandon87]

341 meeting in 3 hours.... Pretty nervous!
Hope it goes fast and smooth