What is the best plan after dismissing a bankruptcy?

[Anonymous]

Last year we filed for ch. 7.  After 6 months, it still had not discharged.  We then converted to ch. 13 because the stress was simply overwhelming.  After converting we learned that we could dismiss it ourselves rather than have the federal government controlling our affairs so we did.  So far I have settled every account except for one.  What is the best plan to take from here?

[granny031350]

You could GW the creditors and ask them to update the information.  However I just read that when settled for less than the amount owed, creditors won't usually agree to GW but it might be worth a shot.  Other than that, open some new tradelines and just never be late and PIF each month.

[Anonymous]

Just out of curiousity, why would you want to convert from ch7 to ch13? I would rather wipe out my debt than have to pay any of them back. The ch7 stays on your report for 8-10 years, the ch13 stays on for a tad less.

And just curious, when you "settled," you debt. Did you settle for less? If so, do you realize you will need to pay taxes on the "forgiven," amount. They will send you a "1099," so if you originally owed lets say $5000 on on credit card and they agreed to let you pay 1/2 $2500, than you will owe taxes on $2500 on the forgiven amount.

Catchmeifyoucan

[Anonymous]

So what is GW?

[Anonymous]

At the time, the ch. 7 rules had changed and it did not look like it would discharge due to the amount of my income.

[Anonymous]

GW = Good Will Letter