Today is the day!

[RAnthony83]

I am finally going to start the process on filing Ch 13. I'm equal parts excited and nervous.

I have a question for the group. How long did it take you to " bounce back" from Ch13? My wife and I want to get back into buying income property and I'm curious how long it takes to get your score back up to the point you could qualify for a mortgage in a investment.


Thanks!

[sophieanne]

Congratulations for starting the process. It takes a little time after your case is completed before you can get back into the investment purchases. I think you might want to take one step at a time. Good luck as you get started.

[shipo]

Bouncing back is a fairly long and drawn out process. The following is kind of a chronology of my process:

• 2012
  • My wife's business failed and left us in a LOT of debt.
• 2013
  • I discovered my business partner had spent over $100,000 in my name for a niche business he started; a business which didn't yield a single penny of income
  • Due to the financial burdens, my wife and I sold our house of 11 years at a significant loss and separated.
  • I found a smokin' deal on a "Care Taker" apartment on a horse farm where part of my rent was offset by taking care of the horses and pitching a ton (literally) of poop per week.
• 2014
  • My estranged wife filed for a Chapter 7, which had the effect of dumping the remaining portion of our joint debt on my shoulders.
  • I was where you, RAnthony83, are now, namely starting the process for filing a Chapter 13.
• 2015
  • My filing was complete and my attorney submitted my case in late January.
  • My confirmation hearing took place in March and then I settled in for the long grind.
• 2017
  • My car, then 16 years old, succumbed to rust and other corrosion; there went 100% of my meager savings plus the next month's income for food and such.
• 2018
  • I got a large tax return and the Trustee said, "I'll take that, thank you very much!"
• 2020
  • Last payment in February and Discharge in March.
  • My wife moved back in with me in April after staying in contact over the years.
  • I applied for a few Secured Credit Cards; all declined, including Bank of America, where I'd been banking for many years.
  • I was finally approved for a CapitalOne Secured Credit Card, however, after using it for only two months I closed it after discovering they play games by triggering anti-fraud protocols (where they hold your payments for up to 12 days) if you pay more than once per month (and with a credit limit of only $1,000, I had to pay almost weekly).
  • I changed banks and got a Secured Credit Card through my new bank with a $5,000 limit.
  • Even with all of the machinations, my credit score for both Equifax and TransUnion is now hovering around 720; the lone fly in the ointment is my Experian score which has bounced around between 600 and 625 and is currently 607.
  • Even though my Chapter 13 was discharged in March, I've been pretending I am still in it and have been paying my savings account instead of the trustee.
• 2022
  • If all goes as planned, my wife and I will have saved enough for a down payment on a new home; that plus the 2-year window for obtaining an FHA mortgage will have passed which should make it relatively easy for us to obtain a mortgage.

So, basically ten years from the time our financial melt-down hit full stride to when we are back in a home of our own.

[RAnthony83]

Bouncing back is a fairly long and drawn out process. The following is kind of a chronology of my process:

• 2012
  • My wife's business failed and left us in a LOT of debt.
• 2013
  • I discovered my business partner had spent over $100,000 in my name for a niche business he started; a business which didn't yield a single penny of income
  • Due to the financial burdens, my wife and I sold our house of 11 years at a significant loss and separated.
  • I found a smokin' deal on a "Care Taker" apartment on a horse farm where part of my rent was offset by taking care of the horses and pitching a ton (literally) of poop per week.
• 2014
  • My estranged wife filed for a Chapter 7, which had the effect of dumping the remaining portion of our joint debt on my shoulders.
  • I was where you, RAnthony83, are now, namely starting the process for filing a Chapter 13.
• 2015
  • My filing was complete and my attorney submitted my case in late January.
  • My confirmation hearing took place in March and then I settled in for the long grind.
• 2017
  • My car, then 16 years old, succumbed to rust and other corrosion; there went 100% of my meager savings plus the next month's income for food and such.
• 2018
  • I got a large tax return and the Trustee said, "I'll take that, thank you very much!"
• 2020
  • Last payment in February and Discharge in March.
  • My wife moved back in with me in April after staying in contact over the years.
  • I applied for a few Secured Credit Cards; all declined, including Bank of America, where I'd been banking for many years.
  • I was finally approved for a CapitalOne Secured Credit Card, however, after using it for only two months I closed it after discovering they play games by triggering anti-fraud protocols (where they hold your payments for up to 12 days) if you pay more than once per month (and with a credit limit of only $1,000, I had to pay almost weekly).
  • I changed banks and got a Secured Credit Card through my new bank with a $5,000 limit.
  • Even with all of the machinations, my credit score for both Equifax and TransUnion is now hovering around 720; the lone fly in the ointment is my Experian score which has bounced around between 600 and 625 and is currently 607.
  • Even though my Chapter 13 was discharged in March, I've been pretending I am still in it and have been paying my savings account instead of the trustee.
• 2022
  • If all goes as planned, my wife and I will have saved enough for a down payment on a new home; that plus the 2-year window for obtaining an FHA mortgage will have passed which should make it relatively easy for us to obtain a mortgage.

So, basically ten years from the time our financial melt-down hit full stride to when we are back in a home of our own.

Thank you for the detailed time line! I' m glad things are coming full circle now for you!