Can someone tell me about life after Chapter 7?

[HAP]

I assume it's no cakewalk. But I'm imagining after all is said and done and unsecured debt, etc. is discharged -

- of being able to pay all our bills every month (possible even early) not waiting until the 15th day to pay on a 15 day grace period.

Not having to do some creative juggling with grace periods or paying late (but not later than the 30 day late credit reporting mark).

Being able to make "extra" payments or doubling up on other payments occassionally to pay something down faster.

Actually being able to put money into savings or contribute to a 401(k) account every month.

Having the extra money for my husband to get some much needed (and expensive) dental work done.

Paying cash for unexpected expenses (such as mechanical work on car or if something around your house needs to be fixed) and not having to charge it.

Taking modest vacations (everyone needs a break) but paying with money from your checking account for it and not charging it to a credit card with the best of intentions of paying it back but that never happening.

Not having to worry about if we'll have enough money for gas for our cars to get back and forth to work every month.

Not neccessarily living paycheck to paycheck.

So am I living in la-la land or does this really happen after a Chapter 7 (or whatever chapter we end up having to file)?

[emoney]

It only happens if you change your habits and stay on a written budget.
regards,
emoney

[Granny]

I assume it's no cakewalk.

So am I living in la-la land or does this really happen after a Chapter 7 (or whatever chapter we end up having to file)?

No, you are not living in la-la land, it happens that way with a Ch 13 also. We've had expenses that previously would have devastated us and been put on a credit card. It was a great feeling to whip out the check book and be done with the expense once and for all.

It's also a great feeling to open a savings account and put some money into it every month....and it's not painful when you have to pull some of it out to pay for an unexpected expense because you know, in time, you'll be able to replace the withdrawal and that there will be some there the next time you need it.

The key to success is learning to live within a budget and to budget for the unexpected in the form of a savings account.

[lrprn]

If your debt load is primarily non-secured (and not a high amount owed on student loans), then all of what you listed will happen after both Ch 7 and Ch 13 if:
- You have the discipline to learn to live within your income and control your expenses.
- You create a family/personal budget and stick with that budget consistently.
- You learn the difference between "need" and "want".
- Life's top three bad financial circumstances (divorce, major illness/accident, job loss) don't darken your door for a long time after filing.

However, if you have a low amount non-secured debt or have a large amount of non-dischargeable student loans to pay back after discharge, then you won't have as much relief after your bankruptcy is over. You can still achieve what you've listed, but you will likely need to increase your income or decrease your expenses significantly to make it happen.

[PaKettle]

...
[snip]
- Life's top three bad financial circumstances (divorce, major illness/accident, job loss) don't darken your door for a long time after filing.

That brings up an interesting issue. Let's say you file Ch. 7 and then some time after that, but before you can file again (what is it? 8 years? 10 years?), you do have a sudden illness or major financial devastation. What do you do then, if your savings do not cover it and you have no assets to sell to cover your debts?

Can you file a Ch. 13? How often?

[WantToBeDebtFre]

We've been living very good since filing (Oct 12, 2007). Right after I filed Chapt 7 bankruptcy I got a raise at my job. So now I actually have enough money to pay my bills every month plus a little bit extra. We paid cash for Christmas presents this year (which we had never done before). Plus our washer broke the last week in November($500) and our car just broke down yesterday and costs another $500. We've paid cash for all these purchases. Now I can't say we have any money at the moment but we're making it through without credit cards which is the most awesome thing ever.

[lrprn]

If you filed Ch 7 before Oct 17, 2005 and were successfully discharged and closed, to have new debts discharged, you have to wait six years to file again.

If you filed Ch 7 after Oct 17, 2005 and were successfully discharged and close, to have new debts discharged, you have to wait eight years to file again.

If you filed Ch 7 after Oct 17, 2005 and were successfully discharged and closed, you can file Ch 13 and have the new debt discharged in four years.

If you filed Ch 13 after Oct 17, 2005 and were successfully discharged, you can file Ch 13 and have the new debts discharged after two years.

Ch 13 cases filed before Oct 17, 2005 have no stated time limit for filng Ch 13 again and having the new debt discharged.

Whew!! And I haven't even listed what happens if your prior Ch 7 or Ch 13 case was dismissed - that's a whole new list of timeframes! For that information and to verify what I listed above, check out http://www.orb.uscourts.gov/orb/Docu...4?OpenDocument

[CATCHMEIFYOUCAN]

After my Ch7. I worked on cleaning up my credit report, I couldn't tell you what my scores look like. I was able to trade in my sonata with the dealer and get an upgrade for the same car. I got a couple of credit cards. I'm not back to working 2 full time jobs, but might as well be since I've been working 60-70 hours overtime since last year (sometimes hitting 80-100 O.T) after my 341 meeting, and just this past week I'll of hit 114 hours O.T. I just don't know what to do with my extra money but gamble - when I have the time, I did up my 401k by deducting 10% of my pay.

[FreshLikeADaisy]

CatchMe, have you thought about opening a savings account in a completely separate bank, having some of your check direct deposited there, and just leaving it alone? I did this for many years, and it worked for me because I refused to get an ATM card on the account (so I'd actually have to visit the bank during business hours to access it) and basically just did my best to forget it was there. If you're getting snazz overtime, that might be an option. Might even make the gambling more fun, knowing that it's not affecting your financial security and you have your "nest egg" in more than one nest...

Just a thought.