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Need Help What To Do Bankruptcy

New Visitor

Need Help What To Do Bankruptcy

Hello I am new here been reading a lot on here and I need help what to do if I should file for bankruptcy are not Heres all my credit cards & auto loans

Bank of America $300 1st Card every had 8yrs old
Capital One QS $1,200
Capital One QS1 $1200
Credit One Bank $1,500
Hughes FCU $2000
Navy Federal $2500
Bloomingdales $1,500
Macy’s $1,500
Express $3,500
Victoria Secret $950
Fingerhut $1,000
Hughes FCU Auto Loan $73,000
Hughes FCU Auto Loan $55,000

I stop paying all my credit cards 5 months ago & auto loan everything went 120+ late and closed

Credit karma says my score is 413/438
Everything is closed all cards

I also have 4 collection’s
Verizon $1,300
Nordstrom $4,900
Cox Cable $380
Sprint $925

Do you guys think it’s a good idea to file for chapter 7 I qualify for it I checked

And after I do file and I get discharged

Since all my cards went 120+ late
Do you think I can get credit cards again?

Thanks for reading let me know
Message 1 of 12
Community Leader
Senior Contributor

Re: Need Help What To Do Bankruptcy

Are you going to be including your car loans? They are some high loans .

A lot goes into a BK. What is your income ,your expenses?

BK attorneys will give a free consult . It all depends on the means test. But with those high car notes I assume you have a good income or has that changed ?

EXP 758 TU 783 EQ 729
Message 2 of 12
New Visitor

Re: Need Help What To Do Bankruptcy

Yes I’ll be including all credit cards Collections everything that is bad on my credit I will include

The auto loans I don’t have the vehicles they’ve been surrendered not Repo I surrender them
My income was 125+k yearly
But that change that’s why I let go of my credit

Message 3 of 12
Valued Member

Re: Need Help What To Do Bankruptcy

I think 2 important questions to ask yourself are:

1. If you didn't file BK, how would you plan to get out of debt? That is, do you have alternatives?

2. If you file BK, how can you prevent from getting into the same place in the future? If you can do BK7 obviously it would wipe out your current debts and give you a fresh start, but it sounds like you didn't develop enough of a cushion on a 125k+ income to weather the change. Not being judgmental, as we've all been there for various reasons, but you need to be committed to a plan where you'll be better equipped to avoid whatever knocked you into the debt spiral in the future. 


I would be careful about doing the means test yourself to calcuate if you qualify for BK7. I thought I qualified because my student loans at that time were over 2x more than my annual income and would count toward non-consumer debt. Turned out I had benefits from my job like health insurance, etc I didn't know had to be factored in, and I couldn't pass the means test and ended up going Chapter 13. 


Also, be sure to look at all of your property and exemption limits. 


Your best option is to talk to a bankruptcy attorney, although be aware they are probably going to recommend BK since that is their business. It's not their business to find alternative ways for you to get out of debt. 


As for credit cards, there are many stories here of how people rebuilt their credit after BK, so it is definitely doable. But before thinking about future credit, commit yourself to a plan to get and stay solvent.


Good luck, and I hope it works out for you!


BK13 filed 2014, discharged Nov 2019
FICO 8 Dec 2019: EX 584, EQ 580, TU 529
FICO 8 Jan 2020: EX 681, EQ 708, TU 670 (updated, reporting correctly)
FICO 8 May 2020: EX 701, EQ 714, TU 688
Petal 11/2019 SL: 3,500
Cap1 QS 01/2020 SL: 7,000
AMEX BCE 5/2020 SL: 12,000
Message 4 of 12
Valued Member

Re: Need Help What To Do Bankruptcy

I would talk to a lawyer to make sure you qualify but chapter 7 was the BEST thing i could have done in my situation. I had a large car loan (dumbest thing i ever did) and alot of credit card debt. you will be able to get credit cards again but it will take some time for lenders to trust you again. The downside is finding an apartment/home that will rent to you after bankruptcy. I had a hard time finding a place to approve me but once i finally found somewhere then they just required automatic withdraw for the 1st year. My bankruptcy lawyer offered a payment plan so my bankruptcy costs reported as a loan to help build my credit through a company called bk billing. I started with a fingerhut fresh start acount and my monthly payments for a vacuum was around $12 month. 2 months after bankruptcy i was able to open a $200 secured  discover card and after 8 months (of responsible use) it became unsecured with a $1800 limit. My only advice is if you do file bankruptcy make sure you make a plan to never get back in this situation again. right after i filed i received 1000 letters in the mail from car dealerships trying to offer me a car because they have some "bankruptcy program" with guaranteed approvals. the cars are tempting but i will never do that again because if something happens and i cant pay my note the banks are not forgiving. i made a plan to save money ( even if it was only $20 that month) and only spend what i have in my account. I also started a strict budget (envelope method) for myself and made sure i stayed on it. I hope this helps some. Good luck!

Message 5 of 12
Super Contributor

Re: Need Help What To Do Bankruptcy

Welcome @Fortnite323 

What is your current annual income right now that you will be filing on your 1040 and what state are you in. Are you a homeownwer also?

Message 6 of 12
New Visitor

Re: Need Help What To Do Bankruptcy

Not a home owner
live in Scottsdale,Arizona

Income is around 40k
Message 7 of 12
New Visitor

Re: Need Help What To Do Bankruptcy


Got a question

After I get DC how long should I wait to apply for a card ?

Was thinking about cap 1 & credit one
Maybe a disco secured card with $5,000 limit
To have a good trade line limit
Message 8 of 12
Frequent Contributor

Re: Need Help What To Do Bankruptcy

OP, you’re asking some really basic questions.

Bankruptcy is a big deal and i would suggest taking some time and educating yourself. The search function here will answer most of your concerns. Once you file, your circumstances will be unique, as no bk is the same and you will have questions specific yo your case.

Your last concern should be how quickly you can get credit cards again.

I cant stress how important educating yourself is. When i met with 5 separate attnys, i had a list of questions and concerns already wrote down for them.

The consults are free so theyre not trying to spend a lot of time on these consults. Be prepared. Be ready. People make mistakes through the process just from lack of knowledge.

Btw, yes, you can get a new car and new credit card the day your bankruptcy is discharged.
Message 9 of 12
Super Contributor

Re: Need Help What To Do Bankruptcy

You will pass the means test at 40k a year. As of Nov '19 the amount is $51,388. There is no rush to get credit right after discharge. You'll want to wait up to 30 days after discharge to make sure all accounts IIB report a $0 balance. Then there will be a slight score increase. Thats when you can start to rebuild slowly. One by one with a few months in between apps. Keep us updated and we'll see you in the rebuild forum once your done and ready to get started. We'll be happy to help kick start your new life. good luck!

Message 10 of 12
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