New here- Divorce & BK questions

[Anonymous]

My husband & I filed for Ch.13 two years ago.  We had purchased a business and lost a lot of money.  Before this we had great credit.  In the Ch.13 we also gave up our home and my vehicle.  We have since gotten a divorce.  In the divorce my ex agreed to pay the monthly Bk payment mainly because the majority of the monthly payment is for his vehicle.  The payments have to be made for 5 years total, so we have 3 to go still.  I recently pulled my credit report just to see how bad it was and it was around 650.  I really thought it would be worse.  The only thing is I have to wait until it is discharged before I can try to start rebuilding my credit, buy a house, a car or anything.  So I have asked my attorney if I could qualify for filing a Ch.7 now so I could get discharged within a year.  He said I can and the only thing is I may be responsible for part of the penalties and interest due on our taxes that were including the Ch.13 because this can not be excused in a Ch.7.  I may be responsible for some small monthly payments plus all the court & attorney's fees to file this.  My question to everyone is what would filing again on Ch.7 due to my credit score and do you think one way or the other is better?  My brother works in car dealerships with credit a lot and he thinks it would be better to file 7 and get it over with.  I just don't know if I should do this now or try to make the next 3 years.  I would appreciate any advice anyone has to offer. 

[Anonymous]

No, you don't have to wait to start rebuilding your credit. Are there any bads on your CRs that aren't in the BK13? Old lates, collections or chargeoffs, whether paid or unpaid?

Do you have any open CCs in your name? What are their balances and CLs?

My FICOs are high 500s to low 600s, and I've got several CCs. The BK13 is going to limit choices, but not preclude new credit.

How much total debt is in the BK13?

Since your ex is paying this, you're sorta at his mercy. If he goes into default on it, the BK will bounce you and him both outta the BK protection and then you'll have to start negotiating with creditors. Might be his, yours, or y'alls. If you're in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), then it's likely ALL the debts will be y'alls.

Do you think it's likely he'll meet the obligations until the BK is discharged in 3 years?

If you're wanting some reading on the subject, go here.
http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=17383

The MyFairCredit BK forum has a LOT of detailed BK info. Feel free to PM me and I can point you to more resources on the subject.

[Anonymous]

Thanks for all the great info.  I will read up on all of it.  But for some reason I thought the judge said in a Ch. 13 we could not apply for any new credit until we were discharged.  Does this vary depending on your case?  I will find my paperwork and read over it.  I have not applied for any new credit cards, mainly because I didn't think I was able to.  And I believe all of our old accounts were closed when they were included in the bk.  I really don't want to start using ccs again, just wanted to know what I can do to bring my score up. 

I realize I am at my ex's mercy, but I feel positive he will pay it in a timely fashion.  He has been paying extra each month trying to get it paid off sooner.  I also watch it online to make sure they are paid each month.   I just still don't know if I should wait the 3 years or try to switch to Ch. 7 and get it discharged sooner.  I just want to be able to buy a house and a car in my name or as a joint account in the next few years.  But I will read up on all the resources you provided.  Thanks again for all your advice! 

[Tuscani]

Another helpful link http://www.ftc.gov/bcp/conline/pubs/credit/divorce.shtm