Filing Chapter 7

The only unsecured cards I know of for post-Chapter 7 Bnk are First Premier Bank and Orchard Bank. They are pretty shady companies, but will give you unsecured credit (for an excessive fee) about 6 months after your discharge.

Your best bet would be to go to a local CU for a secured card. It looks the same on a credit report, and you do not lose $200+ for the privilege of having their card. I think BOA also gives secured cards after Ch. 7.

Ch. 7 is an extreme step. I hope you have exhausted all your options. Depending on what state you live in, you could lose everything.

 

my research has shown chp 13 to be far worse then 7? Why do you consider it to be so bad, it gives you a fresh start...when people really need it. I have my appointment with the attny next week as well, I wish you luck, we are also filing chp 7, I agree it is scary but with creditnet they have some great people who give great advice. Take care and Good luck!

 

Your research is wrong (in part). For one, Chapter 13 only shows on your report for 7 years, instead of 10 for Ch. 7. Chapter 13 also shows creditors that you meet face to face you tried to dig yourself out of debt. Also, if you have a family and do not want to lose the family home or cars, Ch. 13 may be your best option.

If all your debt is unsecured, and you rent a house and have no vehicle you need to keep then yes, Ch. 7 is better. But if you want to keep property, Ch. 7 is not the way to go unless you agree in writing with your mortgage company to pay the house after discharge (reaffirming the debt), and you are able to pay. Ch. 13 lets you pay arrears over3-5 years. Thats why you should use Ch. 13 if you have something worth saving.

 

No home, no vehicle. Ch. 7 is your best option. You should protect your future earnings if things are that bad. I would only advise a Ch. 13 if you have a home or vehicle you will lose in a 7.

 

To address your original question, Cap1 sent me an offer for an unsecured card 1 years after my Ch7 was filed. Got $300 CL @14%, 1 year later raised to "platinum" (ha!) with $1200 CL.

I have to ask, based on your 2nd message - have you talked w/the creditor about your going BK if they pursue? Sometimes that results in extremely favorable terms, because *something* is better than a discharge (zero). If they really are the reason you're doing a Ch7, let them know and see what they counter.

 

rockett I agree with you if you have secured items you want to keep then of course a 13 is the better way but they don't so a 7 is the better route. I am still learning as well, just with myself having to make the decision on which one to file...is why I gave her the answer I did. You can start rebuilding your credit with a 7 in 6 months, with a 13 you have to wait 5 years before applying for credit and rebuilding. That is what our attny told us.

 

I was able to get a unsecured card with a 300.00cl from Cap1 the same month that my BK7 was discharged. It's a start.

 

I have heard of people in your situation where bnk actually helped their credit. I do agree a Ch. 7 is the way to go since you do not own anything you want to keep.

 

I agree that bk7 is the best way to go. It cleans the slate and you may be able to have it deleted from you cr's anyway, if you are reading these boards, after all, you've got several years to work on it, and I am finding that there are more and more companies wanting your money for mortgages, autos, etc. withour alot of hefty fees, of course that does not include the sleaze-ball sub-prime cc's. But we had to sacrifice to file bk7 due to lengthy unemployment etc., and chapter 7 is just the way to go to start over with out any of the debt that will still cloud your way. IF you have a choice in which chapter you file may depend on what the attorney says, but do consult with at least 2 of them. It doesn't show any better or worse on your credit report, a bk is a bk is a bk.........

 

To answer the mortgage question. With 2 years of clean credit post bk, you can qualify for an FHA mortgage at conventional rates. These are not score driven.
Do a search here using FHA and you'll find a number of posts from CN'ers with horrible scores getting conventional rates.
Also, look at www.fhalibrary.com

 

Re: Re: Filing Chapter 7

The only reason I'd recommend a 13 over a 7 is if you want to keep certain property that is not exempt. A bnk is bnk is true, but a 13 is on your CRs for 7 years, not 10.

 

Actually, in most cases Chapter 13 is FAR WORSE that the Chapter 7. And in most cases, people who file chpater 7 KEEP THEIR CAR AND HOUSE. I know, I have been there. Also, in 8 states IF you are current on any loan that is secured, such as a mortgage and car loan, you do not have to reaffirm to keep the property. There is a third option and that is called staying current; as long as you stay current on your payments, you keep the property. Also, with a 13, you have all those payments when in a 7 you do not. Also, before a creditor can worry about WHEN they would get their money if they offer you a potential loan, they have to worry about CAN they get any money from you (do you have any to spare). This means a 13 is a lot worse. Also, statistically speaking, most 13's do not get completed and they are then turned into 7's.

 

Re: Re: Filing Chapter 7

It may depend on the state, I know here in Louisiana, if theres any equity in your home, kiss it goodbye in a Ch. 7. If there is no equity and you are far behind, kiss it goodbye once its abandoned from the estate. La. only gives a $25,000 homestead exemption, and in every mortgage its waived.

 

Re: Re: Re: Filing Chapter 7

Good luck with everything. Its unfortunate when creditors play hardball like that. You need to protect your future earnings.