Can you begin rebuilding credit in a Chapter 13 repayment plan

[AreSoonParted]

I qualify for a Chapter 7, but am thinking about doing a chapter 13 because, working for an airline....things can get real bad, real fast and I hate to play my Chapter 7 card unless it's an absolute necessity.

I have a 5/1 ARM that I'm currently 1 year into. If I file a Ch 7, I've been told that in 4 years if my payment history is good, I can refinance my loan if need be....

My question is if I do a Chapter 13, in 4 years I'll still be repaying will my credit score be rebounding. Or do you have to wait the full 5 years and get the discharge before rebuilding my credit score?

Has anyone out there done a Re-Fi while in a Chapter 13 repayment plan?

Thanks, and have a happy and safe 4th.

[lrprn]

Big question that must be answered is that if you qualify now for Ch 7, do you have enough monthly disposable income to qualify for Ch 13? The law mandates that your Ch 13 creditors must receive at least the same amount they would have received in Ch 7. Have you met with a bankruptcy lawyer yet? Most provide a free half-hour to hour consultation, and they can tell you if Ch 13 is a possibility in your case - it might not be.

Also from very recent personal experience, even when you've had an excellent relationship with your mortgage company for many years, they can turn on you after filing bk and start all kinds of shenanigans - not posting your payment quickly enough so they can charge late fees, promising to correct payment histories and then not doing so, reporting misleading information to the credit bureaus that you will be tied up for months trying to correct...I could go on and on. Please don't count on your mortgage company to be your credit savior - they well could turn out to be the exact opposite, especially with an ARM.

Good luck - hope all goes well for you whatever direction you decide to head. Keep us posted - we're here for support any time you need it.

[AreSoonParted]

RE: -- Rebuilding credit in a Ch 13 plan

I'm current on my loan. Also, If I do go Chapter 7, it will be a "no asset" case. I would pawn anything that didn't make the exemption cut prior to filing. I'm in the process of working on a realistic budget with my wife to see if we shouldn't just do the Chapter 7. From cursory review of our spending so far it looks like we'll be able to forego 100-150 a month.

We met with an attorney, he recommended Chapter 7 because we qualify. Maybe he's right.
Good Luck with your mortgage company and thanks, I'll keep an eye on what they're up to.

[dscurlock]

credit after BK

I'm current on my loan. Also, If I do go Chapter 7, it will be a "no asset" case. I would pawn anything that didn't make the exemption cut prior to filing. I'm in the process of working on a realistic budget with my wife to see if we shouldn't just do the Chapter 7. From cursory review of our spending so far it looks like we'll be able to forego 100-150 a month.

We met with an attorney, he recommended Chapter 7 because we qualify. Maybe he's right.
Good Luck with your mortgage company and thanks, I'll keep an eye on what they're up to.

by looking around on this board, people are getting hooters MC
just 2-4 weeks out of BK... so you do not have to wait 5 years
to start rebuilding.