DISCHARGED RIGHT ON TIME! What now?

[dp1969]

We are officially discharged and terminated as of 4/22.
Thanks to all who gave such wonderful advise and support through all the difficult (and nervewrecking) times.

Question:
What should we do now? I was told to go and apply for 3 secured credit cards from our attorney. Any other advise for rebuilding credit?

[Cassiopeia]

What should you do now?

Break out the champagne!

[keepmine]

I'd suggest that fixing the issues that created the bk take precedent over credit repair.
You also need to solidify your financial future. Are you estabishing a savings account for emergencies? Are you maxxing out 401K's. Do you have long and shortterm disability policies? What about a written budget that runs heavily towards living below your means?
Those {along with getting a better job} were my first post bk moers.

[AngelinaCat]

Yes indeed! Congratulations and best wishes

[lrprn]

Way to go, dp!! You made it to the finish line - woohooo!!!!! - now go enjoy your fresh financial start! Congrats!

[dp1969]

I'd suggest that fixing the issues that created the bk take precedent over credit repair.
You also need to solidify your financial future. Are you estabishing a savings account for emergencies? Are you maxxing out 401K's. Do you have long and shortterm disability policies? What about a written budget that runs heavily towards living below your means?
Those {along with getting a better job} were my first post bk moers.

We started putting money in the savings account (never had any extra) right after filing. After quitting my job to be SAHM, the contributions stopped into the 401k but went back to work P/T to a company that has a 401k after year employment. I plan on contributions to that, as well.
We are working on the 'written' budget with the help of my parents (who are very financially stable) and making plans of repayment of certain loans made to us.
Actually, my husband has a very good job...part of the reason we felt we could spend with no limits in the first place. We have learned our lesson (well) and plan to use his salary much more wisely. Thanks for your opinion...all good ideas.

[Flamingo]

If you were smart, you would go at rebuilding your credit slowly. There is really no reason to run right out and try to get any kind of credit card. The majority of the time, you will get denied and then you will have those hard inquiries on your credit reports which now stay on there two years. Those so shortly after being discharged from BK just do not look to good and can really affect your scores. The best plan for anyone discharged from a 13 or 7 is to move slowly; pay all bills on time (phone, utilities, mortgages, etc.) and do not be late with anything. You must remember no matter what anyone says, you will have that Chapter 7 on your credit records for 10 years and it is public information for the rest of your life. How you apply yourself now can lessen any problems as time passes. You have to show you are again creditworthy and not going to go out and run up the cards again. You will probably receive credit offers since you are freshly discharged - creditors know you are debt free and will try to hawk you high interest cards. When folks are discharged, their information is public record and is gleaned by all sorts of people for credit offers or auto loans. Be careful and read all the fine print - they are loaded with fees and can carry high percentages. After our Chapter 13 discharge, we received many auto loan offers from places we had never ever heard of and certainly would not want to do business with.

Be savvy, be smart...it's all in the way you conduct yourself in the years to come.

[PaKettle]

CONGRATS! Good luck making and saving money in the future, and staying out of debt!

[dp1969]

Thanks, Flamingo. Why would my attorney suggest that we, after discharge, go and find secure credit cards (3 to be exact), charge a VERY small amount and pay it back as soon as we get the bill? I'm not saying this as an excuse to charge charging but wonder why someone who never steered us wrong in filing our Chapter 7, would say something that could be detrimental to our future financial "rebuilding".

I'm not in a hurry to get a CC, by any means, but wondering if any on this forum have taken steps in rebuilding FICO scores???

[dp1969]

CONGRATS! Good luck making and saving money in the future, and staying out of debt!

Thanks Pa,

You've offered a lot of great advise to me and I'm grateful!!

DP

[sunshine mary]

Congratulations to you I would celebrate !!!!!!!

And that up there is good advise ! I plan to take that advise when my time comes ! No more credit cards for me ! I don't plan to get ANY credit for at least one year and maybe more if I can avoid it...I am a changed woman !

[Flamingo]

Thanks, Flamingo. Why would my attorney suggest that we, after discharge, go and find secure credit cards (3 to be exact), charge a VERY small amount and pay it back as soon as we get the bill? I'm not saying this as an excuse to charge charging but wonder why someone who never steered us wrong in filing our Chapter 7, would say something that could be detrimental to our future financial "rebuilding".

I'm not in a hurry to get a CC, by any means, but wondering if any on this forum have taken steps in rebuilding FICO scores???

The keyword to your posting is "secured." That means you are spending your own money in the form of a credit card but it is a way to get your foot in the door so to speak and your attorney did not give you bad advice. He stated "secured." All you need to do over the next few years is get one or two cards and charge something once in a while and then pay it off. And keep that cycle up gradually rebuilding your credit, apply for another card and see what happens. Just don't go overboard as your credit scores increase. And do not be late with any payment of any sort during the interim. Best of luck to you.

[justplaintired]

Take your time on cc in my opinion. Learn to live within your means first. Once you've mastered that, then work on rebuilding credit.

Right now enjoy your freshstart! Congrats and can't wait to be where you are now!!!

[JRScott]

Congratulations

I would avoid credit for the first few months, let yourselves get used to living with what you have so that you don't run the risk of getting out of control again , then after a couple months apply for a card or two .

[Cali]

Congrats!!

Now you have to start cleaning up your reports, and living a stress free life.