Hey everyone I AM BACK! (I Filed Chapter 13 last month)

You will want to wait at least 12 months, and during that 12 months you must not be late on any of the trustee's payments (my state automatically garnished chpt. 13 payments from paycheck). In order to build up your credit you will probably have to get a card where you are required to put a deposit down. ($200-300), with that card make a small purchase, maybe just a music CD, then pay it off in full. That is some great advice that was given to me. I am about to be successfully discharged from my chpt. 13 and my credit is better now than it was pre-chpt. 13. You will find yourself relaxing and feeling much better! :D

Make a plan after you have filed bankruptcy. You need to understand your situation and where you have been before filing bankruptcy. Make sure that you don????????t repeat the same things for which you have filed bankruptcy.

Be selective about the money you will borrow. Use least amount of credit if possible. Save up cash for certain item you want but don????????t need. This will be a good test of your budgeting skills.

You might have a hard time in getting decent credit rates and terms after bankruptcy. Start in the small way. Suppose, you buy furniture, pay it off within six months. Don????????t go for the offers like "don????????t pay for the whole year". This will be hurt in the long run when you are trying to repair credit.

Get a secured credit card. You will have to deposit equal amount of money for which you will get the card. It allows you to rebuild credit safely while allowing the creditors and the bureaus to get your good payment records.

Work with those companies who report to the bureaus. Some of them don????????t, so your on time payments are doing nothing to help your scores.

When you have finally filed for bankruptcy, look at it in the positive way. You now have the opportunity to correct your past mistakes and learn something right for the future. Formulate a new game plan and then go ahead. Good luck!

Glad you are back and breathing a sigh of relief. Sometimes its the only option and Steelers is exactly right. You can come back stronger than ever especially with the right choices. Take Care and Welcome Back. KYSIDE38

I too am in the process of filing right now. I was approximately $60k in CC debt and I just couldn't pay much more than the minimums. This was certainly not going to work.

I made an honest attempt at settling the debt by working with a debt settlement company that failed miserably. I ended getting sued by one of my cards, and they didn't do anything to prevent it. So I was out about $6k and decided to go Chapter 13. Once I file, my monthly payment will be about $250 less than I was paying the settlement company.

I was uneasy about the "Bankruptcy" stigma that will follow me for the next 12 years (5 year payment plan plus the 7 years on my credit), but at least in 5 years I'll be out of debt and will be able to just pay cash for everything. I'll be much wiser for it.

Just before I entered into the failed debt settlement program, I applied for a $1000 limit credit card. I've been diligent to keep it paid off after small purchases. I have a zero balance on it, so it won't even be listed in the bankruptcy and I'll be able to keep it. I'll continue to make small purchases on it and pay them off each month. I'm hoping that in a very short time, I'll see my credit rating rise.

How often should I plan on pulling my credit report, and how soon after the bankruptcy should I send for the first one? I happen to know that my rating is somewhere in the mid 400's now (it was once around 730).

Thanks for the advise.

If you are regular in the payments in the bankruptcy plan, you should see the positive effects within two years. If you open a new account, make sure that you pay it on time because this is really going to boost up your credit. There is a new life after bankruptcy. You get a new start and learn from your previous mistakes making better financial decisions.

I'm already making better decisions.

I'm very thankful for this forum. It allows me to compose my thoughts and concerns and I get honest replies. Even after I complete my program, I plan on checking in on the threads I've posted to. If I can make it, I plan on passing my experience and encouragement to others. We all need a word of encouragement, and I'll do my part.

tricam -

another member of this forum posted some very useful advice on how to get into the credit report sites using a "backdoor" method, so you don't have to pay for the reports, since you are only allowed a free report once a year (or if you are denied credit). You can go back to the site and enter your report number and click on "review my report" and it will bring your current report up, which you can then print. I've done it several times myself.

And just an update on my Ch. 13 situation as regards my credit - I discovered that only 9 of my over 25 creditors (mostly medical) had filed claims under my Ch. 13 plan. But all of the others were still reporting as collection accounts on my credit report! So I did a test. I disputed one item that was accurate, and one that was not, on my credit report. A few weeks later, I got the results back - the accurate item remains on my report, but the one that was included in the Ch. 13 (but didn't file a claim), was deleted. And it was a judgement item.

I sat down last night and disputed every single creditor on my report that was included in the bankruptcy and didn't file a claim. I don't necessarily need them deleted from my report, but I do need them to be reported accurately. :evil:

Fortunately, I only have 5 CC's that will be included in my filing. My mortgage and vehicle payments are going to be continued as their usual payments. You mentioned that some of your creditors filed a claim. What could they file a claim as, and would it even make a difference since they are listed in the Ch. 13 and the balance/payment is a mute point, or am I missing something? So once I have completed my filings, is it suggested that I dispute all of my creditors, or just the ones that file a claim against me, and how will I even know if they file a claim? Will I recieve a document from them or the court system to let me know? This is opening a whole new set of questions that I was not aware of.

tricam -

You should receive a notice of claims filed from the Trustee or the Bankruptcy Court. When you file, all of the creditors you list will be sent a notice of your bankruptcy filing, and given the opportunity to file a claim to be paid under your Chapter 13 payment plan. They have a certain time frame in which to file the claim - I think it may be 60 - 90 days. (Someone please correct me if I'm wrong on that.)

If the creditor files the claim in time, then they are added to your Chapter 13 plan and will receive payments through the plan, dispersed by the Trustee. If they do not file a claim, they will be discharged at the end of your plan and will receive nothing - just as if you had filed Chapter 7, rather than Chapter 13.

It's not a "must" that you dispute the creditors listed on your credit report. But if there are creditors who haven't filed a claim at the end of the given time for them to do so, I would check into it. To my knowledge, filing a dispute on your credit report doesn't hurt you or your credit - it just makes the credit bureau investigate the validity of the debt, and if it's not a valid debt, or is not being reported correctly, then you have the right to dispute it. (Again, someone correct me if I'm wrong - but I've had a pretty good experience with the dispute thing so far, and I've seen others here who have as well - they were my inspiration for doing it!)

Thanks, I'll be sure to look into it after the court process has been completed.

After reading Tricam's statement, I wondering how with the new laws was he able to use C.C. in bank rup. My next question is my wife has herself, in a mess which turns out to be my mess. She has 8 c.c. which I put in consolidation for her one year ago Jan.The monthly payment is 1250.00 amonth. All cards are in her name. We live in different states. She lives in Ks. She makes 12.50 an hour, and has been unable to meet the payment. therefore I have used up all my savings and 401K to pay. I have a 1150.00 amonth mortgage, plus rent where I am at, ext., Now I am getting myself in debt to try and keep up. Her liveing expences will not alow her to keep up and I can't any longer. Balance as of last week on hwer cards was just under 48,000. Question, If I could get her to file for something, would I be included or is this something she could do in her name only? Can you file with Credit cards only?

Connie, It depends on if you are listed in those debts. My case was such that all the CC's that I'm including in my bankrupcy are only in my name - not my wifes. Regarding the CC that I was able to keep, I have a zero balance. I have not yet actually filed, but my lawyer said that since there isn't a balance, I don't have to list it. I don't plan on using it unless I absolutely have to. In addition, I'm not using it until the bankruptcy is final, and even then, only in an emergency.

If your wife is the only one on the cards, and she's willing to go the route of bankruptcy, that may be your best choice. Although from what I'm reading from your post, there's a much more important thing that needs to be addressed. You put all her cards into some sort of consolidation, and she's back in deep debt. There seems to either be a spending habit or some other behavior that needs to be examined. If filing bankruptcy is going to be sucessful, you need to know what caused the deep debt, and make changes to not fall into the same situation again. Why are you in separate states? Is consolidation of your households possible?

Am I missing anything? It just seems like it's not just the debt that needs to be taken care of. What you are describing really sounds like a bankruptcy situation. I hope you are able to resolve this.

Connie we went through chapter 7 several years ago before all of the reform. and, I really don't know much at all about the new laws. But, I am however, in serious debt with student loans and as I am ill and un-employable they will only consolidate if my husband signs the papers. Now as of yet....his name is not attached to any of my loans and they can't touch him. However, if he signs the consolidation form....to help me...he then too becomes tied in with this debt. Now as I stated ....I don't know if the same holds true for regular BK and CC consolidation. But I would definitely check with a lawyer and find out if in fact you have become liable also for her debts by signing the consolidation.

I have been thinking about filing bankrupt for the past 2 years now. I talked to a representative for a popular debt management program (InCharge Solutions I believe it was)and she told me that their program could not help me because there is no way I can pay my debts back on my income. The sound of that kind of hurt my feelings because I want to straighten this mess I created but they lady shot me down and didn't offer any other suggestions on what I should do. I want to get my credit right because I can't do the things I want now. For instance in 3-4 years I want to own my own family day care. I would like for to be out of my house. Right now I live in a Section 8 home and its against the law to have a business in your home. So I would like to get in our counties first time homebuyer program. But after talking with that lady from InCharge it looks like my dreams can never come reality. I heard that if I go bankupt now it will take 7 - 10 years to get credit. The way I figure my credit has been bad all these years what is 7 more. But I have heard of people filing for bankrupt more than once. I thought this was a lesson to learn not an option to take advantage of every time someone over spends and don't pay the bill. If any one has any suggestions please feel free to tell me.

You can rebuild your credit within two years after filing bankruptcy. You have to get and use credit for increasing your scores. Here is what you can do to improve the credit ratings.
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With the new laws, you will have to do a means test, you should consult an attorney, you may qualify for a chpt. 7, since you mentioned you live in Sec. 8 Housing you more than likely live below the federal poverty line and would qualify. Consult an attorney in your area, many will do consultation for free. You of course will need to have the money to pay the attorney. Before the new bankruptcy laws it was cheaper to file, now it is more expensive and in the old laws filing a 13 was better than a 7. But now the roles have reversed. And from those I know who have filed both, you are FAR FAR better off when you file a chpt. 7 than a chpt. 13. And it is very difficult to qualify and for the first three years of a chpt. 13 they will take every little extra penny you bring in each month. Good luck, and consult an attorney.

Read the new laws in BK explained in this link

http://www.debtconsolidationcare.com/forums/bankruptcy-reform.html

And be careful, if you go and file a chpt. 7 and the trustee decides you should be in a 13 you can be forced into a 13. And if you want it dismissed and you are behind on mortgage and car payments you stand to loose everything. These new laws hurt the consumer more than help. I am so happy that I filed under the new laws, people filing now are going through hell and barely able to survive on what the chpt. 13 allows them to live on each month. The whole reasoning behind the changes were people who abused the bankruptcy system and those who commit fraud. So thank those people. They have made it worse on the person who truly needs the bk to get a fresh start.

My husband and I filed Chapter 13 in Aug 2007. We recieved a call from a creditor about 4 months later that we totally forgot to add in the bankruptcy. I told the creditor that we had filed Chapter 13 and he hung up on me. We received a monthly bill each month and I sent back with the case # and our attorneys name. Today we received a letter from creditors attorney that we were being sued (garnishing our pay). Are we going to have to pay this when they let this go on for over a year and didn't contact my attorney?

My thought is that you should be contacting your lawyer on this instead of sending them the information. Your lawyer should be able to add them to the file. That's the only way to prevent them from successfully sueing you. Good luck.

BTW, I filed a few months before you and it was officially entered in 8/07. It was the best financial decision I think I've made in years. My debt was so deep, and I just didn't have the skills to balance my budget. Even a year afterwards I found myself struggling. Back in January '09, I picked up Quicken Starter Edition ($30). I HIGHLY recommend this program for anyone in a Ch. 13. If you dedicate to using the program properly, and live by what it says you can spend, you'll be able to actually save up. I schedule all income and outgoing bills and it shows me when I'm going to be "Low" on cash so I can curb any spending. I'm actually able to see a huge amout of savings by the end of the year. It's an awesome program.