I'll probably be filing CH13 bankruptcy soon. I don't have any experience with this. I'll be doing a 3 year payment plan and it seems like I can't go all out with rebuilding until it's over. I've seen posts that said they had to get an approval from the trustee to be able to get a credit card or two but even with that, the limits had to be low. Looking at my EQ08 score here, it went from 482 to 507 today. The notes say two of my Cap 1 accounts were charged off.
So will my scores improve a little because accounts are being charged off/closed? I actually don't see why the scores would go up because of that. And what will my options be for rebuilding if I have any. On the plus side, I have an active auto loan with a 100% payment history. All of my auto loans before this one have been 100%. I have two credit cards (DCU and Merrick). Those accounts have a zero balance. I'm going to guess they'll be closed when my BK hits my reports.
I know there is a heeling process that goes along with this but I rather not have to bob around in the ocean with no direction for 3 years. Maybe being added as an AU on my sister's account(s) and or a secured card/secured personal loan?
Any info/guideance will be appreciated.
I took a look at my 3 reports today. Scores are pretty much the same across the board -
EQ - 511
TU - 516
EX - 518
There are two recent HPs from PENFED on my EQ report. I don't know what they did that so I'll be disputing them at some point.
My goal is to get into the 680 range as quick as possible (2 years?). Don't know if that is possible with a CH 13.
I would suggest you make your OWN "credit score" and track to a different metric. Here's your "personal credit score": Number of open lines with no debt owed - open lines with a balance owing - number of derogatories on your report.
Let's say you have 2 cards in good standing, and 5 bad marks on your report and 2 lines with a balance owing. Your "personal credit score" is currently -5. Work on making that score a positive number, and then as big a positive number as you can. Get secured cards open, try and hold on to any cards you can and get them into good standing, etc.
It'll be more rewarding than looking at your FICO which is going to be bleak for the next couple years, but if you get the fundamentals in place once the bad stuff starts receding into the past your FICO will start growing again.
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Last Inq 06/2020
Although, I do not have any personal history of bankruptcy, there is a perspective here on the forum that there are other options besides bankruptcy which is to take control and empower yourself.
Actually, the charge-offs you do not have to awaken those depending on how long it has been as the company's will simply sell your information for pennies on the dollar and the collections department from another law firm or a collection agency will buy the debt and then possibly come after you for the balance. Typically, this may take 1 year to 3 years or more. Every time you talk to them and reveal that the debt is yours, it reawakens the clock. So, if you were 30 days late in Oct of 2002, then it charged off meaning 180 days late or more, by the time the collection companies get a hold of your information, it may be around October of 2003 or later. What they are to do is restart the clock so that it picks up as if you have been late for two years. It is a painful dip in your credit score to reawaken your debt especially after a charge off.
What to do if they contact you?
If you do not know the number of person trying reach you, you really need to decide to let it go to voicemail in these later dates. Do not give them any information or even acknowledge that it is you or your debt. Those first few moments is them seeking out the debtor, oh so pleasantly asking oh, how are you and I just say is this like the most important person I have ever met like win a prize, after you acknowledge that it tis you, then the litigation begins. And they will do everything to keep you on the phone until you agree to pay them back with the hopes that they say, they are paying back the creditor. That is all good and well but you need to take control. Ask them for their information and do not give them access to your bank account for any reason at all until you check your credit report my FICO.com or free annual credit report. You want to see if the company is legitimately going to pay the creditor back or if it is a scam. It is not nice to pay for debts twice.
The outcome: The Shame Tactic - This is not the sum total of who you are as a person.
Once, they know it is you and that is your phone number, they will contact any work/job, family, ex wives/husbands, your children, grandparents, etc. They will call you from a different cell phone number and even use unethical tactics like say their is a warrant out for your arrest or that they are at your job speaking with your captain or lieutenant in the armed forces. This is so ridiculous that I can understand why payday loans are undertaken to pay off the debt especially if the person is still working.
Cease and Desist letters: This forum may have examples do a search.
Bankruptcy does take care of the cease and desist but you can do the same and ask the companies yourself. You can put them even on a no-call list and block them or get a secondary number.
Secure Bank Account Information to avoid Double-Duping and Dipping
add a new bank account that you do auto deposit for that is just for them before you give them a dime. This way you limit them taking away funds intended for your mortgage, rent or auto-loans and avoid unnecessary stresses.
Ask and you shall receive
At this point, please do not feel like you are being judged but if you wish to be advised further, I would rather you present more information like the amount of debt, your range of income and balances with interest rather than my perspective. Also, perhaps other's can chime in with more sage information on the topic and any questions that you may have on the subject. App spree with secured cards is usually a strong remedial force as maxed out cards or anything above 30% of your available balance is a red flag and just means you have work to do but it may not be as bad as bankruptcy so let the experts chime in. Otherwise, it may be bankruptcy is the best option but you never know?
An iPhone feature that I throughly make use of is silencing unknown callers. I haven't taken one creditor call since I stopped paying my cards in February. I've listened to a few messages. I find it interesting that the person will say it's an important matter but they don't say where they are from. I guess it's not that important. The BK attorney I spoke with told me creditors/collections companies will sometimes call relatives and neighbors in their quest to get ahold of the person who owes them money.
I guess one of the benefits of CH13 is I'd only have to deal with the negative accounts being on my reports for 7 years after my first missed payments so at this point I'm 6 years and 5 months away.