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How to rebuild after chp 7

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Valued Member

How to rebuild after chp 7

How do you go about rebuilding your credit, I just for discharge from chapter 7 bankruptcy on 7/25/2019 I have two accounts that I affrimed a closed Visa Credit Card and my auto loan, I owe $841.70 on the credit card and $3,889.05 on my truck. I plan on opening a secured credit card next month, but my question is will my auto loan count as a secured loan?

 

Message 1 of 8
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Established Contributor

Re: How to rebuild after chp 7

Welcome!

 

A lot of us on here have gone through BK, some more recently than others. Right now the dust is still settling on your discharge, so it may take a few months to settle. Pull your credit reports and make sure everything is reporting correctly, ie accounts included in your BK are showing as included in BK, $0 balance.

 

IIWM, I would pay that CC balance down ASAP while at the same time banking as much cash as possible for the next 6 months, building up a savings.

 

Yes your car loan counts as a secured loan, so no need to get another loan. Take your time and choose cards that you will actually want and that can grow with you. Discover & Amex, if not IIBK, are great accounts to get that grow. GL2U!






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Message 2 of 8
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Valued Member

Re: How to rebuild after chp 7

Yes I need to build a emergency fund up.
Message 3 of 8
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Community Leader
Senior Contributor

Re: How to rebuild after chp 7

Agreed - 6 months of aggressively saving every penny possible before anything else. It’ll allow your reports to settle and without opening any new accounts (which are tough to do in the immediate aftermath anyhow) you won’t have money going out elsewhere. Live like a pauper for 6 months and save everything you can to get that emergency fund. Once you have it, forget it exists. Then you can start checking prequals for cards. One initially, and a minimum of 6 months before a second one. Rebuild slowly and methodically and in a year or two you’ll probably be surprised at the gains you make.


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TCL $85,100| Agg. Util under 5%
Message 4 of 8
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Valued Member

Re: How to rebuild after chp 7

Thanks guys, I will do that. I am thinking about going back to school.

Message 5 of 8
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Community Leader
Super Contributor

Re: How to rebuild after chp 7

Can I ask why you re-affirmed a Credit card, and why the trustee even allowed this? Was that your only card in the BK?

My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 6 of 8
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Valued Member

Re: How to rebuild after chp 7

No it was not, I burned a few others.

Message 7 of 8
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Valued Member

Re: How to rebuild after chp 7

The credit union would not let me keep the car loan without keeping the credit card.
Message 8 of 8
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