Life during and after CH13

[redemption]

Well, I filed with my lawyer today and I will be doing CH13 on a 60 mo plan. She was telling me while I am in the plan that I will have to get permission from the trustee before I can obtain any new debt. For the folks that have completed the plan or are still going through it, what is the rebuilding process like? Did most of you wait until you were finished or were you able to obtain credit while you were still in it? The reason I ask is not because I want to run out and get credit cards, but mainly because I want to get a new house and maybe a new car later on down the line(in a few years). Did your credit scores take a major hit or did they improve some? I have collection items on my credit report that will be IIB and some are slated to fall off my report soon. Once I include them in the 13, does that start the clock over as far as reporting time or will they still fall off as scheduled? The items I am including that are not on my report will they show up on there as well? TIA!

[lrprn]

For the folks that have completed the plan or are still going through it, what is the rebuilding process like? Did most of you wait until you were finished or were you able to obtain credit while you were still in it? The reason I ask is not because I want to run out and get credit cards, but mainly because I want to get a new house and maybe a new car later on down the line(in a few years).

Redemption, what brought you to Ch 13? Can you share some personal details about your case?

It worries me that you just filed and already thinking about taking on more big secured debts before your five years to start fresh are even up. This could really undermine any relief from filing that you will realize. Frankly, it's very difficult to find lenders willing to lend to you during Ch 13, even if your trustee agrees to allow you to take on new debt. And those lenders will have outlandishly high percentage rates and other extra loan costs that the car or house will cost you far more than it should.

Did your credit scores take a major hit or did they improve some?

Frankly, why do you care? You are in bankruptcy. Your credit scores are going to be bad after you file, period. The best cure for poor credit scores after bankruptcy is time and lots of it. As I said already, it's worrisome that you have just filed and are thinking about your credit scores rather than focusing on how to get through the next five years on very little (if any) extra income. The way you currently spend your money and think about your finances will have to change or your Ch 13 is likely to fail and be dismissed. That is where your focus needs to be now, not on how to take on more debt or what your credit scores are going to be after filing.

Sorry for being so blunt...I just want you to be successful, for your fresh financial start to be a reality, and for you to not find yourself in this same situation a few years down the road when you can't file bankruptcy again for quite some time. And if I've mis-interpreted what you said, please help me understand the reasons behind your questions better. I really do want to help - that's why we're here.

[SinkingFast]

We filed Ch 7. Discharged. Clean Slate.

I want a car so bad I can taste it. We need a car that can make it beyond the county line. Something big enough for the whole family to ride in. But we ain't buying.

Buying a car means taking on payments and more insurance. Money we don't have and don't wanna spend every month.

I agree with Lrprn. If you're looking at Ch 13, you don't need to be thinking about taking on new, Big Ticket Item debt.

[$$only4ever]

I am currently in a 60 month plan. I have paid 22 months and have 38 to go. Why would you even think of taking on new debt while in a chapter 13? Your only priority for the next 60 months is getting through the bankruptcy so you can get discharged. Getting a discharge is the only way of improving your credit once you file a chapter 13. For the next 60 months you pay cash as you go. No credit!! and hope to god that you don't have an emergency. Are you aware that only 1/3 of the people that file a chapter 13 are successful? Chapter 13 is hard. Ask anyone that has filed and lived through or are going through a chapter 13. To be honest with you, the last thing that I want is more debt. That's how I got into the mess I got to begin with.

[coma]

We're in the eleventh month of a 36 month plan, and it's really hard. We also had a move in the middle of things, and had alot of extra expenses to deal with. It is not pretty. You have to be disciplined and careful with every dollar. Wait to get credit until you are discharged, and even then, be judicious and conservative.

[redemption]

The reason I got in this situation is because of some personal loans I took out and some bills that i got behind on and they turned into collections. It's not like I have credit cards now because I don't. Not a single one. I appreciate the advice but like I said before I was just wanted some insight as to what i have to look forward to. My debt is under 30K so it's not the payment I'm worried about. As long as I'm working I can make it. I am not looking to make the same mistakes I made before. I said I did want a house and a new car LATER ON DOWN THE LINE(A FEW YEARS). I didn't know if I would have to wait until I was done or if it was possible while you are in the plan. Every where my family has lived, we have rented and I'm just tired of paying someone else's mortage. If I have to wait until I am done then so be it. Not trying to sound harsh or nothing like that but it's just a learning experience I guess. Thanks for the replies.

[aa06a47]

redemption, you have taken the first step toward financial freedom from debt, of course, being a chapter 13, it is just the first step. You have 60 more to take.

Most people's credit score does tank after filing bankruptcy. The ones you hear about actually going up are those that have no place to go but up. If you monitor your score, you'll notice a slight rise after all the creditors take the balance due to zero, but it won't go up much.

Be careful about getting credit cards during chapter 13 bankruptcy. My mailbox is full of offers (I would say I'm getting on average 2-3 per week..all preapproved..) If you read the fine print on most of them they give you a 500 credit limit, but have so many fees associated with it it is not worth having.

[redemption]

aa, I get those kind of offers now. Those kind of offers go straight to my shredder. Ah well, time to start the 60 month journey!