Life after the big BK....getting a job, a car, and general living questions

[BKlooker]

So I was wanting to hear from those of you who have done this song and dance what it’s been like afterward as far as getting a new job (had serious problems?), getting a car, and just general day-to-day life? Have you found it hard to rebuild credit? How long has it taken you to “stabilize”?

Basically, was it worth it and what has been hard about the time after? How long before you were able to buy a home/get a new job/get a new car/get a decent credit card?

Thanks in advance!

Note: Obviously I am not a lawyer and anything I post is purely anecdotal and NOT legal advice

[tobee43]

i can only tell you just 8 weeks after discharge.....

we have 3 cards...ONLY because we would like to buy this house one day and need to establish our credit.

the lines are 1300, 1500 and 2000. the 1300 had a $39 fee.

we gave up on jobs....we were lucky had a pension and one of use opted for early ss...enough to live fine where we are not where we WHERE...had to leave the state.

i'm awaiting some answers myself! would like to know who got a mortgage etc. i hear it's this and that...but actually i'd like to know who actually got one???

good thread BK...thanks!

[mickeyme]

BKlooker - I was Ch7 discharge in Jan 2009. The only items reporting to our credit are our reaffirmed cars and (1) cc that we forgot we had. The interest rate on the cc is through the roof so we use it here and there and pay off the balance immediately (I don't want to get into trouble again). As of Jan 2010 our credit scores were 636 & 634 and I expect them to be higher in Jan 2011 when I run them again.
As for a job, don't set your sights on anything in the financial industry. I know too many people who also filed BK and wasted a ton of time researching and interviewing for those types of positions just to be shot down. Most other industries you should be fine; but if you apply for a company that does run a credit check then I suggest being honest...it has worked for me.
Prior to our BK we could not afford to pay our creditors so after our BK the only relief we had was that the creditors stopped calling. It wasn't until we stopped paying our mortgage that we have become stabled. I know this sounds absurd but in deciding to short sell our place we have been responsible in saving all the money we would have paid into the mortgage. Some $$ will go to moving cost and the balance will be our ER funds. In re-evaluating our situation we have decided to rent a place that is less then we are paying in mortgage as to allow us to save up to $500 a month. With this plan we should be fully stable in about 2 1/2 yrs. (i.e. cars paid off, 3 months salary in savings, & saving at least $1000/month)
As for new mortgages most people on this forum say as short as 3 yrs...and I have also heard that Credit Unions are sometimes the best way to go. We hope to purchase another home in about 5-7 years so I too am interested in hearing from anyone who has gone through the process.
Good luck getting back on your feet. I know I have never felt so in control of my life as I do now.

[BKlooker]

Good to know, mickeyme. I am in the IT industry, so I doubt it would be an issue for me, especially after a couple years goes by, as i have done reading around and found many others in the same industry who have had BK and said it wasn't a problem at all so long as no security clearance was involved. I think it depends what level you are going for (management of anything may be hard, but i would think Sr. level programming and below wouldn't be an issue).

You are right, being honest i likely the best if they ask or do proces credit checks. BK is so popular anymore, as long as you are upfront and explain in a clear manner why it happened, they aren't likely to screw with you, especially if everything else checks out. Some positions are such that if it's in super-high demand, they need them filled so badly, turning away a perfectly good programmer with excellent background because of a credit issue from 1-3 years ago isn't feasible.

[tobee43]

really the situation with the unemployment is more far reaching that just a hand full of industries. i'm a paralegal...in san fran one of the largest firms closed...most civil attys are going down the tubes...the only ones doing business nowadays are bk atty's ..LOL!! not really funny, but many of the atty's that can't do it anymore are now turning themselves into short sale specialist....or save your house specialist...on an on...they hire 8.00 an hour people...shoot..i use to be a billable employee to the client.

the other one of us in the house has been in a field for over 30 years ...and of course no one will touch the salaries we had.

both of us are in fields that require...or usually require credit checks...and or bonding.

i guess i could go work for a bk atty for 8.00 an hour but my two least favorite types of law were bk and family....but now they are the two on the boom!!

i would likely think a bk firm would find that i filed helpful?? LOL!!! how ironic!

[AngelinaCatHub]

I'm not sure I qualify to answer our OP's question.

First our house was/is paid for and we protected it (long before bk was necessary) by giving our farm to the State of Florida for a specific use. A wildlife and Historical Park. It has a wildlife easement and can never be "developed" other than for Public use as per Deed. We have a life estate and life rights on all the property so we lucked out there. We have our cake and don't pay taxes on it.

Before we/I got into a pizzing match with another millionaire we had plenty of spendable cash. His serial suits and political pulls got our career jobs lost, and then the big "C" with no medical. It does not take long to go through big bucks. The day came when we were hustling up coins for milk and bread. The big realization finally hit us in the head when the calls started.

That being said, Credit is not an issue as we will not use it again so we have no idea of our current score, or interest in finding it out.

Housing is permanent and lovely. Of course normal upkeep keeps us busy. The house is in constant state of repair and change.

The lack of money has changed our life style a lot. But what we have, we value more. We shop the side of the roads a lot and boy do people throw a lot of good stuff away. I wear name brand clothes like new after a good wash. Some even fit me. LOL.

We are MUCH happier after our "new start" and take it seriously and put it to good use. Getting a job in our County in FL as our County is the second poorest and at 14.5% unemployment, there just is no work and our ages are against us as well. Who hires anyone over 50? I get a bit here and there as I am a computer consultant and did teach at CompUSA and the local college and probably could do that again, except my health is a bit different with me standing that long in a classroom. A small pension and SS gets us just by, but we have simple interests.

So the bottom line from our perspective is, bk was the best thing we ever did and the biggest lesson of our life. We learned a lot, revalued our priorities and are generally happier than before we got busted financially. If I could go back in time, I would not attempt to change what has happened to us.

The secret though and it is no secret really, is that; you have to accept the situation as it is and not look back as it "used to be", and when it was the way it "used to be" is what got you into bk.

Forget that credit score. I hate hearing that question over and over. The score will take care of it's self, and as many people who are going under water, that score will lose it's importance soon. 'Hub

[tobee43]

The secret though and it is no secret really, is that; you have to accept the situation as it is and not look back as it "used to be", and when it was the way it "used to be" is what got you into bk.

Forget that credit score. I hate hearing that question over and over. The score will take care of it's self, and as many people who are going under water, that score will lose it's importance soon. 'Hub

truly and absolutely the BEST advise one can give....take it as it comes and what comes certainly was not as bad as what once was....WHAT did i just say????

[AngelinaCatHub]

truly and absolutely the BEST advise one can give....take it as it comes and what comes certainly was not as bad as what once was....WHAT did i just say????

Heck, don't ask me. I have trouble rereading my own stuff. Five minutes later it is all new news to me. Must be the age thang.

[tobee43]

Heck, don't ask me. I have trouble rereading my own stuff. Five minutes later it is all new news to me. Must be the age thang.

it certainly is....you know hub...as i read your post it really made me feel blessed....yes, the 4500 sq ft white elephant is now gone after 33 years...it was KILLING US....we had the entire house closed off but 3 rooms...the grounds were so difficult and expensive to up keep...which we did ourselves and took such pride for all those years...we were getting up there and it was getting tougher and tougher...so here we are in our 1900 sq ft nice little NEW place...knowing this time our pension and ss can cover all costs no matter what happens...because changes are we will never regain employment at our age....NOT that i am that old...it's just once they see the OLD resume they don't want to hire and one even said we don't need anyone with that much experience...LOL!! after they advertised...EXPERIENCED paralegal...well NOT that experienced, i guess!! LOL!!