Discharged! It all happened so fast...

[Lee123]

I went to an attorney in January and was told to stop paying credit cards. Did so, and went back in April and filed. My 529 was set for May, but was moved to June since I was out of town. Just got word today that it has been discharged. It all seemed so quick and relatively painless. I'm happy, but am also kind of numb. It's the final chapter of a former life... ahh, all that aside I am still confused on where to go from here with my credit.

Since the divorce I have made drastic financial changes for the better. I have built a savings and am slowly but surely moving away from the paycheck to paycheck routine. I'm concerned about how my BK will affect future job opportunities, rentals, etc... Any insights? I hear conflicting reports on the good and bad of having a BK.

[keptdigging]

Write your legislator in favor of laws prohibiting credit checks being used in employment screening!

Unfortunately there may be ignorance out there... everyone here knows that post-bk people are much better risks. It's the person with crushing debts who's trying to avoid bk who makes the headlines selling secrets. After a freshly minted bk, you (1) don't have credit burdens, (2) don't have credit available to get burdens, (3) can't discharge for 8 years, (4) don't have a lot of savings (yet) so you really need to succeed in that job! Much better profile than the typical american struggling with their debts.

[Fallonedward]

Write your legislator in favor of laws prohibiting credit checks being used in employment screening!

Unfortunately there may be ignorance out there... everyone here knows that post-bk people are much better risks. It's the person with crushing debts who's trying to avoid bk who makes the headlines selling secrets. After a freshly minted bk, you (1) don't have credit burdens, (2) don't have credit available to get burdens, (3) can't discharge for 8 years, (4) don't have a lot of savings (yet) so you really need to succeed in that job! Much better profile than the typical american struggling with their debts.

I love this list

[Lee123]

I think I am most concerned about my BK affecting my future chances of getting a new apt/ buying a house in the future. I am not expecting to buy a house for the next few years, but I will be moving within the next year and hate the idea that I would be running into roadblocks because of my BK.

[df04527]

only my opinion on this but i am seeing more and more of the landlords being understanding about ruined credit because almost everyone has it now (economy) and they need the renters in these places to keep themselves afloat.

as far as a new house -- at least a couple years and then it may still take quite a bit - the more distance between the date of bk and the present the better.

try to obtain new credit as soon as possible to start re-building positive trade lines to outweigh the negative trade lines over the next couple years.

[Ray]

To the OP, it sounds like you're already on the right track. I filed Ch 7 in May, had my 341 in June, and was discharged Sept 1st. In between all that in July, I interviewed for a job out of state that required extensive background checks as well as a credit check. I was upfront about my BK, and they understood that I was still waiting for my discharge. They were okay with it because it meant to them that I present far less risk of stealing and selling information.... so they hired me and asked me to start August 16th.

The next challenge was finding an apartment in my new state...I called around to of the management companies all the complexes within reasonable commuting distance and they all told me they will rent to me with a BK as soon as it is discharged. That was very encouraging to hear, but the problem was I had to move by Aug 16th and had no idea when to expect my discharge. I ended up finding someone willing to sublet to me for 6 months based my signed offer letter and a copy of my drivers license.

So as of now, I have a great job in a new state, an okay apartment to stay in for a little while, I am officially discharged of my debt, and I'm rebuilding my credit. My plans are to move to a nicer apartment in February since I now know that it's a possibility.

My advice to you is to just reach out and talk to people and you'll be surprised at how things can work out.

[Fallonedward]

To the OP, it sounds like you're already on the right track. I filed Ch 7 in May, had my 341 in June, and was discharged Sept 1st. In between all that in July, I interviewed for a job out of state that required extensive background checks as well as a credit check. I was upfront about my BK, and they understood that I was still waiting for my discharge. They were okay with it because it meant to them that I present far less risk of stealing and selling information.... so they hired me and asked me to start August 16th.

The next challenge was finding an apartment in my new state...I called around to of the management companies all the complexes within reasonable commuting distance and they all told me they will rent to me with a BK as soon as it is discharged. That was very encouraging to hear, but the problem was I had to move by Aug 16th and had no idea when to expect my discharge. I ended up finding someone willing to sublet to me for 6 months based my signed offer letter and a copy of my drivers license.

So as of now, I have a great job in a new state, an okay apartment to stay in for a little while, I am officially discharged of my debt, and I'm rebuilding my credit. My plans are to move to a nicer apartment in February since I now know that it's a possibility.

My advice to you is to just reach out and talk to people and you'll be surprised at how things can work out.

Ray, this is so encourgaging...thank you so much for posting this

[ccsjoe]

Ray, thanks for sharing. And congrats on your awesome fresh start!!

[Ray]

You're welcome. I had read posts on this forum while I was in my ch7, but I had to sign up yesterday because they only let you view so many posts before they start blocking access....lol Now I'm glad I did, because I hope my story can help encourage others.

[tobee43]

You're welcome. I had read posts on this forum while I was in my ch7, but I had to sign up yesterday because they only let you view so many posts before they start blocking access....lol Now I'm glad I did, because I hope my story can help encourage others.

welcome ray!! your story absolutely HELPS people....sharing your experience is what this forum to me is all about...

additionally, i met some of the BEST people here! all walks of life..from all over the country. it's a great experience and it's great that you can share and most likely help someone by what you have been through.

[Lee123]

try to obtain new credit as soon as possible to start re-building positive trade lines to outweigh the negative trade lines over the next couple years.

This is another thing that has been a big ? for me, would be obtaining new credit. I know that at this point I may not have too much of a problem of getting credit, but I am confused with what people say. The only way that I know of in opening positive trade lines is through credit cards. Now I have learned A LOT about credit since BK. Things that I WISH I knew before. But from my readings I get a mixture of different opinions.

Some people post BK say why would you want to open up a cc when it is what got you in trouble in the first place? Others I have read said you HAVE to open up these tradelines to improve your credit. I am wanting to buy a house down the road, and I want my credit to be in as good condition as possible.

Are there other tradelines that I can utilize to prove my credit worthiness? Getting a car is out of the question. My current vehicle I own outright, and I plan on driving her until the day she dies on me in the middle of the highway.

And if credit cards are my best option how soon after BK should I get one? I am thinking of at least waiting until January before applying for credit. Is that a reasonable amount of time to wait? My mom thinks I shouldn't mess with credit cards at all, but I don't want to be like my brother... 33 years old, any credit he had he ruined years ago, and has had nothing since.

Also, does anyone have any good recommendations for experts on financial budgeting and making the best of your finances? I have read some Suzie Orman and Dave Ramsey articles skimmed through their books, but both seem to be of the belief that bk is financial devastation. I am usually quite depressed even before I get to the financial advice. I want to feel like this is a fresh start, not like my life is ruined and will never be the same.

The next challenge was finding an apartment in my new state...I called around to of the management companies all the complexes within reasonable commuting distance and they all told me they will rent to me with a BK as soon as it is discharged. That was very encouraging to hear, but the problem was I had to move by Aug 16th and had no idea when to expect my discharge. I ended up finding someone willing to sublet to me for 6 months based my signed offer letter and a copy of my drivers license.

Ray, wow, your BK went as fast as mine! From reading some of the posts on here and elsewhere I thought I was going to be in BK limbo for months to come. Thank you so much for your inspirational post. So basically the word I am getting is to be upfront with the apartment complexes. I am a stellar resident at the current place I'm at, I'm hoping my timely payments here will help for future residencies.

[lvasilieva]

If you are currently employed, your employer is prohibited from any actions because of your bancruptcy. However - if you are in a profession that is overlooked by a professional body this may be another story. The profession may withdraw or suspend your membership and your employer may take actions because she cannopt use you in the usual capacity (that requires your professional membership).

If you happen to change the jobs, just know that fed goverment is prohibited from discrimination based on credit, but even state gov or private employer is not.

Good luck!

[Ray]

Lee, since you are already discharged, I see no reason why you should wait to start to re-establish your credit. On another forum that I follow, I found out about a secured credit card that literally has NO credit qualifying criteria... they do perform a credit check, but not to look at your score or history... it's just to verify your identity. It will show as a soft pull on your credit reports... meaning you'll see the inquiry when you order your reports, but other creditors will not see it. I actually applied for the card online, sent my security deposit and had it in my hands and was using it the week after I filed. I'm not sure if we can post links here or mention company names, so send me a PM and I'll give you the name of them. They are very highly recommended on the other forums in the realm of secured cards.

Subscribe to a credit monitoring website so you can watch your scores improve over time as you work to re-establish your credit. I signed up for one the day before I filed. I watched my scores go from the mid 500s, to the upper 400s that month!! Then I watched as all my acct balances got zeroed out and updated to show they were in BK, and as of Thursday two scores are in the 580s, and one is 620!! That's helping me to stay encouraged to keep at it.

As far as feeling down, try to keep focused on the positive. You really have a fresh start, it's almost like a once in a lifetime opportunity. We don't necessarily have as much control over our circumstances as we'd like to think, and we all have valid reasons that landed us here in the first place. So we all need to make the best of it and follow the advice of people who've been in our shoes. You have the support of people on this forum, so you're definitely not alone.

Ray

[df04527]

80/20 rule is that after a BK you will have to start with secured cards, then graduate to a non-secured card.

I believe, that people who have not been through a BK are quick to say stay away from credit cards - they are dangerous and what caused your initial problem! I say hogwash - most people have learned, unfortunatley the hard way, that credit cards and debt will bite and know much more post-BK to fall in to those same traps.