Life after Ch 13 discharge?

[brtb]

DH and I are almost one year into our Ch. 13. We're looking ahead and are trying to plan for the future. We're currently in a 5 year plan. We want to relocate and buy a small house. We're currently in a house and our mortgage is current and is being paid outside of the bk.

What is life like after the big discharge? Will we ever be able to get a mortgage? We want to relocate, but feel stuck until we're discharged.

Thanks!

[kornellred]

There is no way to answer those questions. It depends upon so many factors that are unique to individuals and their general life situations. Do people get mortgages after completing Chapter 13? Yes. Will you? Probably, but not on terms that are very easy to deal with. Can you relocate during a Chapter 13? No doubt some folks have done just that, but it would have to make sense to your trustee.

You have four years left. That is a very long time, as you will discover.

[brtb]

Thanks for your reply. We're just trying to look ahead to what we want to do after the bk is discharged. Our attorney said we could each get a small credit card (under $1000) and start rebuilding our credit now. Make small purchases and pay it off each month. So, we're on that path. I see the light at the end of the tunnel, but it's just getting there.

[BNKRPTinNC]

....... We're just trying to look ahead to what we want to do after the bk is discharged. Our attorney said we could each get a small credit card (under $1000) and start rebuilding our credit now. Make small purchases and pay it off each month. So, we're on that path. I see the light at the end of the tunnel, but it's just getting there.

A year in and you are attempting to get a credit card for "small" purchases. Why? I find it unlikely that you can even get a card with that kind of limit and even if you could how much would you have to pay for their "generosity"? If you want to build your credit worry about that once the 13 is completed. Personally, my wife and I have taken the stance of "if we can't pay cash for it we don't need it". We are 3 1/2 years down and have found that cash rules and you are forced to make adjustments in the way you spend in order to have that little bit extra for the time you are going to need something more than just a small purchase and, it seems to me, using a credit card is of little to no use to anyone trying to save.

Look, I don't mean to sound harsh or anything but you need to take advantage of the opportunity the 13 affords most of us and that is; a somewhat clear slate, financially, and a fresh new start, once completed. We are far better off now than we were before the 13 and have weathered a few storms and are still saving and are planning for the day when the discharge papers come. The last thing on my mind is credit especially a credit card even tho I would like to re-finance my high interest mortgage. I will worry about that when it's all done and over with and make sure that I get the 13 completed and any other bills outside the plan are paid promptly and on time.

Four more years is a long time but there is an end and our first year was the hardest. 1 1/2 to go and the smile on my face gets a little bigger as each day goes by. Best of luck to you.

[brtb]

Thanks for your reply. Actually our attorney recommended us to get a secured credit card to use and pay off each month. He suggested a card with a $250 or $500 limit for each of us so we can start rebuilding our credit. I'm only going on the recommendation of our attorney.

[BNKRPTinNC]

I understand that you are getting the advice from your atty and it may very well help with your credit score down the road. But is it worth the annual fee and the money that is tied up to "secure" the card? Others may be able to speak from experience on just how much this will help your score as I have not considered that route.

[slim]

Makes sense. I did something similar - got an unsecured one through my CU. No annual fee and I pay it off every month. They see my checking account so think they were comfortable with me but may take a little work. Our state uses your FICO to impact your insurance so improving the FICO pays off. There are some cards out there that have outrageous fees so read the fine print. 2 1/2 years in my FICO is near 700 after bottoming out around 600.