Advice for starting over after BK?

iVillage Member
Registered: 03-27-2003
Advice for starting over after BK?
5
Wed, 06-04-2003 - 3:56pm
Hi all,

We are waiting for our discharge from a recent BK and want to start over the best we can. As it is, we are still struggling to make even our household bills, but getting out from under $60,000 in credit card debt has been a life saver. Does anyone have advice as to how to start investing, saving and basically making a fresh start? Our goal is to apply for a new mortgage in 2 years, as we desperately need a bigger house, and we know that we will need 24 months of PERFECT credit and payments to even be considered.

Thanks alot and good luck to all!

Lisa

iVillage Member
Registered: 04-24-2003
Wed, 06-04-2003 - 4:33pm
My husband and I filed in 1999 and after that we vowed never to have credit cards again + we stuck to that for about 2-3 years and then decided to open up two small credit cards (one a secured card) to rebuild our credit. We used them and within 6 months paid them off, never late. This was the only credit we had rebuilt since our bankruptcy. We just purchased our first home with an excellent interest rate, so bankruptcy is not the worst thing as long as you learn a lesson from it and rebuild from there. For us, it was a relief to get from under the debt and have a fresh start. I do wish that I had opened a new credit account sooner + rebuilt + maybe my credit rating would have been even higher, but in the long run we did get the mortgage we needed to get + it all worked out. Good luck to you!
Avatar for tbudd762002
iVillage Member
Registered: 03-25-2003
Wed, 06-04-2003 - 5:08pm
I went to the library yesterday and checked out Mary Hunt's "Debt-Free Living". I am awaiting my bk hearing and all the lovely things that go with it, but I know the reason why I am in this situation. Most everyone on this board has been singing Mary's praises, and now I know why. I recommend this book to anyone who has the same problems as me...can't save, can't give, and overspend on crap!!!! Good luck and best wishes!

Tanya

iVillage Member
Registered: 05-09-2003
Wed, 06-04-2003 - 6:35pm
We reaffirmed the loan for our Blazer, so that's helping rebuild our credit. Not sure if I want another credit card, if I do get one, I'll never let it get out of control.
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 06-04-2003 - 6:50pm
Hi there Lisa. I don't know the ins and outs of Bankruptcy - but we do have a bk q&a board with LOTS of experts - http://messageboards.ivillage.com/iv-mlbankruptcy - I do recommend that as a fabulous resource.

My only advice is to be very, very careful - there are creditors who *specialize* in preying on the newly discharged b/c they KNOW you can't file again for a long time.

Danni

All my best,
Danni

iVillage Member
Registered: 03-26-2003
Fri, 06-06-2003 - 9:33pm
Hey- hold your head up... you'll be fine. I too was discharged april'02..this board helped me so much with the many questions i had.. i pulled my credit reports last sept just to see what it looked like after the ch7..and then i started back in Jan'03 cleaning up the reports and oh my i have gotten so much stuff off of the reports i couldnt believe it. I want to get a house soon. I just talked to a mortgage lady and she said 2 years of discharge is ideal and too keep working on my scores. I am at 682 with Transunion and 599 with Experian and 597 with equifax. I am in the middle of disputing some stuff then i will reorder my scores. I was approved for a Cap One $250 limit, Target $200 and a Orchard Bank card $1000 limit all unsecured this year.. So i will use them to rebuild my credit. I definetly learned a lesson from having to file...