Hello, I filled a 13 in 2003 due to a job loss in 2002 that made a mess of my mortgage payments on one of my 2 rental properties and I though by doing the 13, it would give me the opportunity to catchup and pay off past amounts and lawyer fees. Well the house in question has continued to be a nuisance (irregular rental payments, drug busts, shootings, terrible tenants and more), so since I have 1 other house I've just recently paid off but can't refinance due to the 13 being in place for another 2 years, I decided to convert to a 7 last Wednesday and give up the problem house with the hopes that at the closing of the 7, I can refinance the paid off one and use the refinancing as a means of quickly rebuilding my credit. So my questions are: Does my plan make sense? How fast is it to refinance after a chapter 7? Do all banks offer secured credit cards? Does American Express still offer Secured Credit cards?
Jasper, The plan does make sense. I use to post here a long time ago. Currently, I am working at a consumer bankruptcy firm. Converting to Ch. 7 and discharging the liability is a smart idea, especially on a problem mortgage. As far as your other questions, I will defer to others. Creditnet....I am BACK!!!
I am in Wisconsin and I think I can exempt all my assets since in a 7 one can choose what goes under a 7.
I think it depends on several things how soon you can get a mortgage. I've seen posts where people get an FHA after a year or so. BUT--you want to mortgage rental property, and that is different, so I have no idea. If you own the property where you're living and you have some equity in that, it would be better to take a loan out on that property and use it for the rental. Mortgages on property where you don't live usually carry a higher rate and are harder to get, whether you have bad credit or not. I think the BK would just complicate things, so I really can't answer your questions.
Welcome back, Reshod. I mentioned on another thread that I may not have been posting here when you were around, but I was certainly lurking. Did you finish law school or decide it wasn't worth it?
