From the pamphlet my Trustee sends all CH13 filers: "Obtaining credit without permission of the Trustee is not only a violation of the Bankruptcy Code, it is subject to reversal by the Court. Any credit purchase you make without approval of the Trustee would be illegal, the goods would have to be returned, and would very likely be out any payment you had made. You would also place your plan in serious jeopardy if you obtain credit without approval." Did you not have these rules, did you ignore them, or did you actually ask your Trustee?
In California, it is not illegal to get new credit while in a Chap 13. My attorney and I talked about that - and all the credit card companies solicit those in or after BK.... I need clarification - not that it matters in my situation 6 years later and 1 years of reporting to go.. my STRATEGY was to rebuild exscellent credit in the 7 yrs it would take to get the old bad BK accts off my reports. I wondered that myself when Provdian offered me a card 30 days after I filed in 1996. But I took it and started rebuilding. aarrff - dogman
Hmmm. Well MY Attorney said I couldn't borrow more than $100 in aggregate at any point, and he's far from conservative. I guess I'll ask the Trustee. On the chance that she allows secured but not unsecured cards, is there any point to getting one more than 2 years prior to my getting out of this?
To anyone who's rebuilt credit while in a BK13. Sorry I wasn't clear, but I didn't think anyone else would answer!
No worries, reddevil, it just read to me like you were addressing someone specific. The problem with trying to rebuild while in C13 is that you can later include them in the plan. I don't know that I even tried to get anything while in BK, hmmmmm, nope pretty sure I did not. My discharge though does have a specific boiler-plate paragraph addressing items obtained without Trustee approval. Sassy
yep iamsamiam, Dismissing takes the court out of your affairs. Sassy BTW, you here anything from acorn for your friends?
Bot a damn thing from Acorn, but we did get on Lending Tree and had 4 really decent offers, much better interest rates. They are refinancing and the payments will be right at $500, such a difference from $1055, dontcha think? With getting my house loan and getting them straightened out I am thrilled. Has been a good week.
wowOwowwwwwwwwwwwww! That's incredible, iamsamiam, it has been your week for sure! Congratulations to you and them, lol lol, and Merry Christmas, Happy New Year ;-). Who's going to do the refi for them? wowOwowwwwwwwww, I can't get over it, more than 1/2 of the payment, I'm giggling myself giddy. This is great news! Sassy
I could not have done it without you sassy. Even with mutliple bk filings, and chapter 7 accounts from a few years ago, their scores were still 580. I guess those 30 years of perfect credit up until 1997 paid off a little bit, they had numerous tradelines that were paid in full up until '97. We are so excited. We have not decided on an offer yet, they got two really good ones, one from Centex and one from Aames. I know they are both subprime lenders, but what the hell. The interest rates they are offering are decent. I also know what to watch for when they go sign the papers, they will be messing with the wrong b*tch should they try to pull any fast ones. We are going to make absolutely sure that the deal will go through before we dismiss the bk. They may need just a little help now and then, but they will make it just fine now. This is a huge load off my husband and I, we were giving them close to $2000 a month to help them, now we can go forward with our plans.
awwwwwwww iamsamiam, Thank you. I've not heard of either of them, no news is good news, lol I'm glad you know what to watch for, I was shocked once I'd heard the term "predatory lending" and started researching it. I'm really tired of learning things through the school of hardknocks myself. My primary focus is to refinance with a prime score and/or with a company who doesn't plot to take your house. It's amazing how many people are financially destroyed and losing all they have and then feeling bad for not knowing what they got into or how to get out. There are some good sub-prime lenders out there and it's a viable market -- I only object to those that would dig up your grave to take your gold-capped teeth, as well as your house, everything in it, dig up your garden, first born and blood samples. Sassy
Sorry we hijacked your thread, reddevil, I was just thinking, I believe Marie has previously posted about rebuilding credit via a loan taken out against a CD from a bank. It rebuilds credit, is secure, is an installment loan, and is through a prime lender -- those are the perks. I remember thinking before what a great idea that would have been for pursuing while still in C13. Sassy
Sassy, I did that also with the cd's. Took out some loans against them and did very well with the raising of the scores. Two were paid of a couple of months ago and even though everyone warned me about paying it off early, I did anyway and my husband's EQ score went up 50 points. They were 6 month loans. Thanks for everything sassy, and you are exactly right about those slime subprime lenders.
