Well, it's almost two years since our discharge. Though I'd give an update on post BK life for anyone interested. 
I've been helping a coworker with her bankruptcy journey and using this forum with her and it sure brought back the memories of my own journey and all of the priceless help this forum provided.
We tried to keep our house. We did not reaffirm the loan, just kept paying the mortgage. Our income never picked up to what it was pre BK, so we kept slipping behind further on the mortgage. Finally we admitted to ourselves that we needed to
get out from under the loan and start fresh. So we put our house up for sale. We sold it in about a month. I can't tell you how much of a relief that was. Just the thought of being unable to make the next month's payment and worrying that we would lose the house was a huge weight. I am very grateful to our local bank who held the mortgage note for being so understanding when we were late and even slipped behind a few (more like three) payments.
Anyway, we used the small amount we made on the house sale and bought a used trailer. As in manufactured home. We paid for it in full. So no mortgage!!! The feeling of owning my home free and clear and not having to worry about it being taken from me is so good. Now we did trade down! We went from a 3000 square foot house to an 1100 square foot house. We went from a nice large yard with a concrete driveway and fenced back yard to a very small yard. But we are near family, and we have reconnected with them and our children have learned that they really like each other! We spend so much time now with our family and that is a good thing.
We did not reaffirm our vehicles. In the past two years we have paid them off. My husband has a 2001 truck and I have a 2004 car. In the old life they would have been traded in years ago. Now you would have to steal it to take it from me!!! The thought of a car note is truly sickening to me.
For the first time in my adult life we are truly free of debt. It is awesome!!!
I still regret having to file for bankruptcy, but without filing I would never never have been free of that crushing weight of debt.
I guess the important thing is to use the fresh start as that, a fresh start.
Now, as far as the "stigma" of bk goes, it sucks. It really does. Two years out and we went to our bank for a very small loan as strictly a credit builder, mainly as a test to see what would happen. We are talking 500.00 here. We got turned down. The loan officer said they have a very strict policy on bankruptcy. They will not loan for any amount as long as the BK is on the credit report.
Cell phone companies on the other hand seem to be more lenient. We just switched carriers and had no problem with the credit check. We also had no problem opening a checking account. Our rates for car insurance is still a little higher than it was pre BK.
Since we live on cash and debit cards for internet purchases, we don't really worry about a credit score. But should something come up, it will be an issue.
Also, since filing, I have found out that there are so many people I know that have filed bk. I don't really know what to think of that, but there are so many people in the same boat that we were in.
As far as our finances, since we took such a huge hit in 2008 we really never recovered. My husband got a second job for a while but that didn't work out. So we are making alot less, but we have learned to live on a lot less also! We rarely go out to eat, I buy alot of our clothes on ebay or at the thrift store, I have become a coupon user, we are trying our hand at vegetable gardening, my husband hunts more (deer and wild hog), we have begun canning vegetables and jellies, we watch what we spend really closely. I get our kids what they need, and try to get them what they want. Making them understand the difference is hard sometimes!
Anyway, if you've hung in here this far I guess what I'm trying to say is that bankruptcy was good for us. For the first time in ten years I am learning to relax. I think if we had cut the cord on the house and sold right after we filed I would have learned to relax two years ago!! So moving out of that really nice neighborhood and downsizing might be the thing for you too. It was definitely worth it for us.
Good luck in your bk journey!!!!!!!
I've been helping a coworker with her bankruptcy journey and using this forum with her and it sure brought back the memories of my own journey and all of the priceless help this forum provided.
We tried to keep our house. We did not reaffirm the loan, just kept paying the mortgage. Our income never picked up to what it was pre BK, so we kept slipping behind further on the mortgage. Finally we admitted to ourselves that we needed to
get out from under the loan and start fresh. So we put our house up for sale. We sold it in about a month. I can't tell you how much of a relief that was. Just the thought of being unable to make the next month's payment and worrying that we would lose the house was a huge weight. I am very grateful to our local bank who held the mortgage note for being so understanding when we were late and even slipped behind a few (more like three) payments.
Anyway, we used the small amount we made on the house sale and bought a used trailer. As in manufactured home. We paid for it in full. So no mortgage!!! The feeling of owning my home free and clear and not having to worry about it being taken from me is so good. Now we did trade down! We went from a 3000 square foot house to an 1100 square foot house. We went from a nice large yard with a concrete driveway and fenced back yard to a very small yard. But we are near family, and we have reconnected with them and our children have learned that they really like each other! We spend so much time now with our family and that is a good thing.
We did not reaffirm our vehicles. In the past two years we have paid them off. My husband has a 2001 truck and I have a 2004 car. In the old life they would have been traded in years ago. Now you would have to steal it to take it from me!!! The thought of a car note is truly sickening to me.
For the first time in my adult life we are truly free of debt. It is awesome!!!
I still regret having to file for bankruptcy, but without filing I would never never have been free of that crushing weight of debt.
I guess the important thing is to use the fresh start as that, a fresh start.
Now, as far as the "stigma" of bk goes, it sucks. It really does. Two years out and we went to our bank for a very small loan as strictly a credit builder, mainly as a test to see what would happen. We are talking 500.00 here. We got turned down. The loan officer said they have a very strict policy on bankruptcy. They will not loan for any amount as long as the BK is on the credit report.
Cell phone companies on the other hand seem to be more lenient. We just switched carriers and had no problem with the credit check. We also had no problem opening a checking account. Our rates for car insurance is still a little higher than it was pre BK.
Since we live on cash and debit cards for internet purchases, we don't really worry about a credit score. But should something come up, it will be an issue.
Also, since filing, I have found out that there are so many people I know that have filed bk. I don't really know what to think of that, but there are so many people in the same boat that we were in.
As far as our finances, since we took such a huge hit in 2008 we really never recovered. My husband got a second job for a while but that didn't work out. So we are making alot less, but we have learned to live on a lot less also! We rarely go out to eat, I buy alot of our clothes on ebay or at the thrift store, I have become a coupon user, we are trying our hand at vegetable gardening, my husband hunts more (deer and wild hog), we have begun canning vegetables and jellies, we watch what we spend really closely. I get our kids what they need, and try to get them what they want.
Making them understand the difference is hard sometimes!Anyway, if you've hung in here this far I guess what I'm trying to say is that bankruptcy was good for us. For the first time in ten years I am learning to relax. I think if we had cut the cord on the house and sold right after we filed I would have learned to relax two years ago!! So moving out of that really nice neighborhood and downsizing might be the thing for you too. It was definitely worth it for us.
Good luck in your bk journey!!!!!!!
341 on September 23 
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