Haven't been here in a long time...BK question

iVillage Member
Registered: 08-15-2004
Haven't been here in a long time...BK question
2
Mon, 03-14-2011 - 10:37pm

Hello, I haven't been here in a very long time. (sorry) But I've got a question....We filed BK (13) two years ago and things are going well.

Community Leader
Registered: 07-26-1999
Welcome back to the board Nancy! Congratulations on being 2 years into your plan and it going well.

Firstly, you should get either a semi-annual or annual report of what payments the trustee has gotten into the BK and then what it has paid out. You have to remember also that your attorney gets his/her fees paid through the BK for a chapter 13, so there may have been attorney fees paid out of what you have already paid in. Also, the trustee gets a bit of a fee for administering the BK. Another possibility is that less claims may have been filed agains the BK estate than initially set out in your petition. For example, you may have listed $66k worth of debts you owed, but possibly creditors only filed $50k worth of claims. Which would mean that you "owe" less than originally anticipated. If this is the case, then the creditors that did file claims may get more $$ than anticipated originally. Also, any tax refunds you may have gotten over the last two years that weren't originally factored in will be a bonus to any creditors.

As for life after BK, it does go on. You will still be able to get credit, but in the beginning it will be harder and it will be at a higher interest rate than before. As for a car, I would suggest trying to tuck a little bit of money aside whenever you can in anticipation of having to repair or replace your current car. Ideally, if you can pay cash for a car after BK, that is the best case scenario, or taking as small of a loan out as possible for a car. I filed a chapter 7 back in 2004. I got a very low limit credit card about a year later to begin rebuilding my credit, and in 2008, my DH and I bought a home and had no issues at all getting a mortgage. It takes time obviously to rebuild your credit, but it can be done through simple things like paying on time for things like cell phone plans, mortgages, rent, etc. And obviously after coming out of a BK, the best strategy is to do what you can to stay debt free.

Also, if for some reason your car doesn't make it through the BK, you can also do certain things like ask the trustee to keep a tax refund to help pay for a new car, or ask the trustee to enter into financing of a new(er) car loan. If you have an experienced BK lawyer, they will know the BK friendly car dealerships in town that are willing to work with people who have filed or are currently in BK to obtain vehicles.

Good luck in the rest of your journey!!
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iVillage Member
Registered: 10-01-2008
Good question Nancy....we're in the same boat. Although I hope my car will make it 2.75 more years. I love seeing my principal balance go down. Three of my accounts still earn interest, so that explains part of my difference. Hope all continues well for you.

Norma


"Patience is the best remedy for every trouble"- Plautus