Rebuilding Credit During Chapter 7

[CostantinoA]

I filed chapter 7 on 06-06-19.  My MOC is 07-15-19.  I was wondering if it would be an issue to open secured cards and secured loans during the process. I want to get the rebuilding started as soon as I can.  I really don't want to wait till the discharge to start rebuilding.

Thank you,

[FireMedic1]

Yes you can. But I advocate to wait until the DC is done. And all your crediotrs have listed the correct info on your reports to IIB and 0 balance. Credit isnt going anywhere. And waiting a month just to get going right away really wont make the score rise any faster. I followed my board certified attorneys advice and waited. Glad I did because once everything updates you may experience a score rise. Which could mean better terms and if you didnt burn Cap1. You could start unsecured and not have to go the scured route.

Finally its JMO. For future creditors. They will see that you were in a hurry to jump back into the credit game before DC. So some will say yes do it now. Some like myself will say. Chill and let the BK finalise and then start the rebuild. Its your choice.

[Jnbmom]

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@FireMedic1 wrote:

Yes you can. But I advocate to wait until the DC is done. And all your crediotrs have listed the correct info on your reports to IIB and 0 balance. Credit isnt going anywhere. And waiting a month just to get going right away really wont make the score rise any faster. I followed my board certified attorneys advice and waited. Glad I did because once everything updates you may experience a score rise. Which could mean better terms and if you didnt burn Cap1. You could start unsecured and not have to go the scured route.

Finally its JMO. For future creditors. They will see that you were in a hurry to jump back into the credit game before DC. So some will say yes do it now. Some like myself will say. Chill and let the BK finalise and then start the rebuild. Its your choice.

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+1

You didn't get into debt overnight and you won't be able to rebuild overnight. 

BK filers always want to jump right back in, let yiur BK discharge make sure all accounts are reporting correctly, put money towards an emergency , start a budget and start your rebuild. It is a slow and steady pace.  You will rebuild and come out better then you are now.

Good luck

[FireMedic1]

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@Jnbmom wrote:

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@FireMedic1 wrote:

Yes you can. But I advocate to wait until the DC is done. And all your crediotrs have listed the correct info on your reports to IIB and 0 balance. Credit isnt going anywhere. And waiting a month just to get going right away really wont make the score rise any faster. I followed my board certified attorneys advice and waited. Glad I did because once everything updates you may experience a score rise. Which could mean better terms and if you didnt burn Cap1. You could start unsecured and not have to go the scured route.

Finally its JMO. For future creditors. They will see that you were in a hurry to jump back into the credit game before DC. So some will say yes do it now. Some like myself will say. Chill and let the BK finalise and then start the rebuild. Its your choice.

---

+1

You didn't get into debt overnight and you won't be able to rebuild overnight. 

BK filers always want to jump right back in, let yiur BK discharge make sure all accounts are reporting correctly, put money towards an emergency , start a budget and start your rebuild. It is a slow and steady pace.  You will rebuild and come out better then you are now.

Good luck

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+2 Its a marathon and not a race as we say here.

[grillandwinemaster]

Take a breath or two before you get back in the water...
What's the rush?

[CostantinoA]

We need to purchase a house 2 years after discharge.  The sooner the better.  We have a high income but the medical bills and other stuff make it impossible to stay ahead.  Now that it will get discharged, we will have plenty of money to save and put down on a home.  Our goal is 700 credit score 2 years after discharge.  Our attorney has a program that is included with his fees that will make that happen.

[Anonymous]

I was denied a Discover Card and BoA when I tried to apply before discharge.... perhaps that is why I'm in my 8th sttement month on the Disco and it has not graduated yet, even though my util is low and my 100% payment history. Just food for thought. 

[Anonymous]

I'm between 650 and 711 and I am less than a year from my initial filing date. You can get there too. I have also spent like 1100 hours on this forum, but a good chunk of that has been trying to share my successes and help others. 

[CostantinoA]

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@Anonymous wrote:

I'm between 650 and 711 and I am less than a year from my initial filing date. You can get there too. I have also spent like 1100 hours on this forum, but a good chunk of that has been trying to share my successes and help others. 

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Nice! I want to rebuild as quick as I can.  The lender said that with 580, he can approve on the home loan but 640 or 680 would be better.  My goal is 700 exactly 2 years from discharge.  I can get most of the negatives off my report.

[FireMedic1]

Waiting 30 days isnt going to hurt you. Remember your score will rise after DC and the reports all show your debt free. This will do more for you rather than getting hits for new accounts before the change happens. Do want you want. But many have been in your shoes and admit they should have waited. But like i said. Its your choice.