ReCredit?

[FG23]

Hello everyone! I am about a week or so out from having my chapter 7 filed. I have some questions…
1. My lawyer said it will all start to move relatively fast…what are your experiences once you filed?
2. I do NOT want to get any credit cards or personal loans for at least a year. I have one secured card that I plan on keeping open. Is this a good idea?
3. When I am ready to reapply for a loan/cc, will I be able to reapply with any of the companies that were included in my C7?
And finally,
4. I have a car, that is…somewhat reliable…ish. Should I try to get a car loan post discharge, or should I push my luck with my reliableish car as long as possible to save more money?
Thank you in advance for any answers.
Also, any and all advice welcome!

[shipo]

Welcome FG23, I can opine on a few of your questions:

1. I have never done a Chapter 7, but I'd be inclined to believe what your attorney says.
2. In sections:
   1. Waiting a full year post-discharges carries both benefits and drawbacks.
   2. Your secured credit card may, or may not survive your Chapter 7; I *think* it will survive, but that's just a guess; keep it open if you can.
   3. For optimal credit rating recovery (important for your future car loan), it is best to have three revolving credit cards which are under the banner of Visa, MasterCard, AMEX, and Discover; store cards don't really help. If you opt for this model, it matters not whether they are all secured cards or of they are unsecured, simply put two of them in your sock drawer, use one, and pay all but a small (sub $100) balance off just prior to each statement cut.
3. Some companies which get burned will blacklist you for a very long time (and possibly forever), companies like American Express and Chase come to mind; others like CapitalOne are very forgiving.
4. I would recommend waiting at least a year on the car loan as well; build up your cash reserves, keep the old one running, and let time start aging your credit rating up a bit.

[FG23]

Thank you so much for this response!

[xyta777]

I filed Ch7 in 8/22 and was promptly discharged 10/22. I mean, I guess it did move pretty quickly all things considered, but it didn’t feel quick, maybe that’s the more important thing? I have no idea what happens on “the back end” for it to take so long.

regarding the car- I was surprised that I was able to get so many approvals after filing- the downside was of course the APR. my pre filing auto loan was 1.79% and post filing, pre discharge I signed a loan at 17%.

regarding the car - it’s a personal choice. Remember, in the event you need a big repair, you probably won’t be able to get a loan for it or charge it- so, a newer car with a warranty offers peace of mind in that regard. And, what city do you live in? How’s public transit? If your car does go down, can you share a car with someone? Also remember your car insurance very likely will increase as well - mine doubled from pre filing to post filing, just because filing BK makes you more risky in the eyes of an underwriter. And, a newer, financed car will of course demand full coverage insurance.

[Carmella]

After the Chapter 7 will have more cash on hand? If you have more cash on hand I suggest saving up for either car repairs. If you don't have any costly repairs in the next year the money you have saved up can go towards a down payment on another car in a year or so.

We had Chapter 13 so I don't know much about Chapter 7, this is just more of my opinion on how to handle the car. After our Chapter 13 was discharged my husbands new compact car has interest around 7 to 8% if I recall correctly. It's not a great rate, but it's better than double digits.