Many of you may remember me as I am a former moderator on here and long-term forum member. I haven't been on here in a few years and thought I'd stop in to see what's going on...it was nice to see a few familiar IDs still around.
To be brief for those of you that do not know me or remember my family's situation, we had to file Chapter 13 in April 2002 after a job loss (hubby) resulting in a 70% loss of household income. In plain words, the rug was zipped out from under our feet and the main reason was we had a ton of credit card debt, really from just going overboard and used to having a high income. When the income went, we were, of course, left with the debt. My husband could not recover from his job loss, we robbed Peter to pay Paul for about a year, and after long consideration, discussions with attorneys, etc., we filed Chapter 13. It was our only way out and we wanted to save/keep our home.
It is now a distant thing of the past and sometimes seems like it never happened. It has been 8 years since our discharge. We learned a lot not only from going through a Chapter 13 but also from this forum. There was no way we would ever allow ourselves to find outselves in the position of ever having to file again after going through that. We made a budget and stuck to it over the past several years. If we didn't need it, we didn't buy it. If we could do without it, we did without it. We do have credit cards but use them only now and then for necessities - we have stellar credit. All traces of the BK were removed off our credit reports 7 years after filing (removed in 2009).
Only once instance arose during this time and it was in December 2011. We needed a new car and had a great deal lined up for a new Elantra. Even though we have fantastic credit and got great financing, we learned that one bank turned us down for "previous discharge of debt." Realize that a BK never goes away - some creditors that were included in your BK may never extend credit to you again no matter how much you make or what your credit score is.
My advice to everyone is to learn from your experience....don't allow it to happen again. Position yourself to avoid the debt if at all possible and avoid credit cards - credit cards in today's world are a necessity so do obtain them gradually over the years to come after your discharge and use them wisely. They can benefit you and hurt you. It's up to you as you are the one that uses it. If you can pay cash for something, pay cash for it. Save as much as possible and if at all possible. Not everyone can save I know that.
BK is not the end of the world. You will survive but how is up to you. You will learn quite a bit about yourself and finances after going through one and the financial learning experience will stay with you always. But do remember a BK does not go totally away as I mention above - it will pop up somewhere along the line to haunt or bite you, but by that time other things will outweigh that issue.
To be brief for those of you that do not know me or remember my family's situation, we had to file Chapter 13 in April 2002 after a job loss (hubby) resulting in a 70% loss of household income. In plain words, the rug was zipped out from under our feet and the main reason was we had a ton of credit card debt, really from just going overboard and used to having a high income. When the income went, we were, of course, left with the debt. My husband could not recover from his job loss, we robbed Peter to pay Paul for about a year, and after long consideration, discussions with attorneys, etc., we filed Chapter 13. It was our only way out and we wanted to save/keep our home.
It is now a distant thing of the past and sometimes seems like it never happened. It has been 8 years since our discharge. We learned a lot not only from going through a Chapter 13 but also from this forum. There was no way we would ever allow ourselves to find outselves in the position of ever having to file again after going through that. We made a budget and stuck to it over the past several years. If we didn't need it, we didn't buy it. If we could do without it, we did without it. We do have credit cards but use them only now and then for necessities - we have stellar credit. All traces of the BK were removed off our credit reports 7 years after filing (removed in 2009).
Only once instance arose during this time and it was in December 2011. We needed a new car and had a great deal lined up for a new Elantra. Even though we have fantastic credit and got great financing, we learned that one bank turned us down for "previous discharge of debt." Realize that a BK never goes away - some creditors that were included in your BK may never extend credit to you again no matter how much you make or what your credit score is.
My advice to everyone is to learn from your experience....don't allow it to happen again. Position yourself to avoid the debt if at all possible and avoid credit cards - credit cards in today's world are a necessity so do obtain them gradually over the years to come after your discharge and use them wisely. They can benefit you and hurt you. It's up to you as you are the one that uses it. If you can pay cash for something, pay cash for it. Save as much as possible and if at all possible. Not everyone can save I know that.
BK is not the end of the world. You will survive but how is up to you. You will learn quite a bit about yourself and finances after going through one and the financial learning experience will stay with you always. But do remember a BK does not go totally away as I mention above - it will pop up somewhere along the line to haunt or bite you, but by that time other things will outweigh that issue.
Bankruptcy Wizard
Nice to hear from your Famingo. Your story will help countless thousands as they contemplate and then go through the bankruptcy process.
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