You guys have been very helpful to me and it appears many of you have financial saavy; therefore, I am asking today for the best advise re: rebuilding after financial ruin. I am 45 and retired early, receiving a pension ($2,390 per month). I have a 2 year old child. I am surrendering my house in a Chapter 7 BK. New rental amount will be $525 per month plus all utilities. Car payment will be approx. $280. per month. What would be the best way to save for the future? I'd be willing to work part-time, realizing that child care costs average $500 per month. I've never been good at this, and any suggestions would be appreciated! (Or am I just too old now to even bother?)
Please don't give up Mary! I'm 45 also and on SSI and a disability pension from my employer. I make about 31K/yr, when I filed C7 back in late August. My fixed expenses are much higher than yours because I chose to keep my house in order for my 17 year old son to finish HS. While I have limited advice on saving for the future I know you can do it if I can. After getting your discharge I would wait at least 30 to 60 days and get all three of your credit reports to make sure they report the most accurate information. Chances are there will be problems with all three of them, especially with some accounts not be listed as "included in bk". Come back (or continue asking questions) when you've filed. Different folks have different strategies when it comes to post bk cleanup. But once you get your discharge you'll *probably* get offers for secured credit cards or unsecured ones (First Premier - I'd stay away from that one unless you really desperate). Good luck on your journey - from a fellow voyager.
I've already received an offer from First Premier....other than the obvious ridiculous charges which would leave me with a minimal credit limit, what are the other drawbacks to this card??? Is it possible I would be denied pre-discharge, meaning inquiry/denial showing on my credit report? Thank you for your hopeful reply!
Have you already been discharged from your bk because I received my "First Premier Unsecured Gold Card" (the one with the high fees) about a month after my discharge. I considered it for about three days and decided to wait for better offers (secured, but relatively high interest cards) to come but they didn't. All I know about the First Premier card is what I read here; the good - they report to all three credit bureaus, the iffy - they have so-so customer service and the ugly - high start up fees - approx. $200 - 230 (the average starting CL reported here and on other boards I frequent is only $250, plus a monthly membership "fee" so you'll always owe a balance while you have the card even if you don't use it. Still, this card is recommended if you have no other choices. I'd wait at least a few months post discharge to see what other offers you received. About two weeks ago (approx. two months post discharge) I received a slightly better unsecured offer from Providian. No upfront fees, no yearly "fee" (don't know how long this will last though), variable APR 16.9%. Since I don't want to run huge balances on a fixed income, I did apply for this one. I also sent for an American Pacific Bank (secured card) application and just received it a few days ago. This secured cc has an excellent reputation. You have to send a copy of your income statements and your discharge paper if you haven't been discharged at least one year. And no serious reported delinquencies which is why I urge you to get your credit reports 30-60 days post discharge because chances are very good that on a least one credit report you'll show a "charge off" or a "paid/unpaid collection" on accounts that you included in your bankruptcy. I am sorry I don't have an answer to your question about how an application for a First Premier Card will be reported before your discharge. As far as I know applying for any new credit before your discharge is considered a "no-no". I've even read that your bk could possibly be dismissed, but I don't that this is a fact. I urge patience and caution. Go on to Bankrate.com and you'll have to hunt around for a while for their list of secured cards. There are probably other sites with lists of secured cards too. If you belong to a credit union some of them have "rebuilding credit" cards, either unsecured or secured. The only caveat about using credit unions is that some of them do not report to the CRA's which would be a bad thing if your objective is to establish positive new trade-lines (but not a bad thing if you only need some cash).
Mary Received a letter on Saturday (2-22-03) that I was approved for a $2000 CL by Providian. I should be getting the card itself within a week. Providian has a so-so reputation, too, but at least it was a better deal than First Premier. Wishing you good fortune on the journey.
Mary all states have programs to help with the cost of child care. You can check out: http://nccic.org/statepro.html Click on your state and see if you qualify. I am assuming you are a single parent because you didn't say anything about your husbands income.
Thank you for your post. My pension income exceeds the income standard for a household of 2 for daycare services. (I used to determine eligibility for those programs) It would help if I could get some assistance, since I am about $500 over the income limit; yet someone close to the limit will probably pay less than half of what I'll have to pay. Just the way the government works!
I can relate. My disability income exceeds the threshold for many free or reduced cost disabilty services. I have to pay full price for every service not covered by Medicare (such as personal caregivers/assistants) despite nearly half my income going to pay the first and second mortgages. I just am fortunate that my kid's daycare days are behind them.
What about babysitting in your home? One or two kids to expand your income, without your own expense for childcare?
I have considered that, but I'm 45 years old and it's difficult keeping up with my own 2 year old! Not sure I can physically handle other children. I may consider some before/after-school-care for older children. I'll let you know how it goes! Thanks for taking the time to consider my plight!
Re: Re: Rebounding from BK Mary, that's a good idea. Me, I couldn't imagine caring for a "pack" of toddlers at 45 either, LOL. But you could probably manage "before/after school care". In many areas it's definitely "understaffed" and there's certainly not a lot of affordable, more formal programs, like school "aftercare" programs. Just make sure you're versed in the local requirements (do you need a "day care license" for example). Again good luck! And keep on posting.
