Questions regarding case nearing closure

[Reddrocket07]

Hello everyone, I have a few questions for those of you who have completed your Chapter 13 case. I'm kind of scared to ask because I'm afraid these questions may seem like I haven't learned from my bankruptcy, which I have. Anyway, here goes.

How has life been since your Bankruptcy case was closed? Have you been bombarded with contacts from former debtors?

My big fear will be managing student loan debt. Based on my income, my student loan repayment will double after my case is complete. I looked into income based repayments and found that they will double in that regard.

Eventually I was hoping to be able to get a new used vehicle a few months or a year after my case closes, but I'm not sure how that's going to go. My current car is falling apart and has very high miles. I've put tons of money into repairs (about $4k this past year) so I've been fixing it here and there but I need to get a new one eventually.

I'm also looking at the possibility of refinancing my house. Personally, I would like to sell it but my wife wont hear it. Our interest rate is high and was locked in during our BK. I haven't pursued this simply because I would have to get my lawyer involved, causing my monthly repayment to increase. This is my first home and I've never refinanced before. I wonder how good of an idea this would be, but I've been told that my mortgage payment could be reduced by $200-$300 a month by refinancing with my current lender.

I'm just wondering if these are wise moves and whether they are a possibility. If they are possibilities, how do I proceed and what time table should I consider?

[LadyInTheRed]

I'm still in BK, but have read enough to say, you very well may qualify for a refi. If your lender was willing to loan to you during your BK, it's good sign they will after your case is closed. Wait for about 60 days after your case is closed and pull your 3 credit reports and dispute anything that isn't reported correctly. Then, apply for a refi. That's really the only way you'll know for sure.

Car loans are pretty easy to get. People fresh out of Chap 7 get car loans, but at high interest rates. You'll probably bet bettter terms than somebody fresh out of a 7. Again, do any needed repair to your reports and then apply for a loan. If you can't get one through a dealer or local financial institution, try CapitalOne Blank Check.

The longer you wait, the better your credit will be. But, interest rates are on the way up. It may help to apply for a credit card, use it for small purchases each month and pay it in full. An inquiry may drop your credit score a little, but it will recover. Maybe go to a credit union and local bank and ask if you can apply for both a car loan and credit card using only one hard pull. But, be open about your BK and make sure it won't disqualify you before they run the credit check. Having two postiive trade lines will help in a mortgage application a few months or a year down the line.

[Reddrocket07]

Thanks for the response. We actually bought our house before we filed our 13 but we have not refinanced before.

I would ask my lawyer or paralegal for advice, but every time I call, I get $250-$1500 added to my case. This is why I'm always hesitant to call. I went through a whole year and a half without them calling me, so now they have resorted to calling me and charging me with it!

[LadyInTheRed]

I misunderstood:

Our interest rate is high and was locked in during our BK.

Regardless, you very well may qualify for a mortgage. Qualification requirements are from the date you filed BK, not from discharge.

Your laywer is probably not the best source of information for qualifying for a mortgage and car loan. Before you go directly to your lender, you may want to talk to a mortgage broker about the possibilities. Find somebody who has experience working with people after BK.