"Life After Forclosure" Discussion

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Deep breath and don't hesitate to share your questions with this community as you go through the process. 

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Thank you 

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Barbara, I'm thinking of asking Upsolve to open a "Deep Breathing" Room because there are many fellow Upsolvers who have been financially stressed out for quite some time now. Ugh! But relief is on the way. Start envisioning your life a few months from now without that giant weight on your back. It's a good feeling, this FRESH START! Until then, as Andrea says, deep breaths -- 3 of them!                            Good luck! :-)

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It's so normal to feel anxious, coming here and sharing this is a big first step. Keep us posted on how you're feeling and don't hesitate to post any questions/comments that come up along the way! 

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I like the deep breathing room idea! 

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https://upsolve.org/learn/the-automatic-stay/ will keep bill collectors from calling and will stop collection activity so that should help provide some stress relief! 

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Thank you all for the encouragement. I’m going to work on completing my bankruptcy package this weekend so I can get it mailed out on Monday. I think a deep breathing room is a wonderful idea. I’m looking forward to relieving the stress & anxiety I feel with my debt issues. 

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I’m stuck, someone help! Please

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Is there anyone online that can answer my questions?

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<3 Andrea, so happy to hear this!! 

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I love this post, Andrea! I felt the same way. every now and then we find something that works for us --- a product or service --- and in a world where it gets increasingly difficult to sift through the "noise" to get to the good stuff, we strike gold and it makes our day to the point that we want to tell others about our great experience. Right? I mean 9 out of 10 customer service calls with well know large corporations leave us less than enthused. But when we come across a genuine world-class experience that BETTERS our lives by solving our problems and saving us time/money and/or relieving our stress --- it's WORTH SHOUTING ABOUT (thus the upper case!). Congratulations, Andrea J., now go get 'em with your Fresh Start! :-). 

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So great to hear, congrats!! :) 

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One of the things to consider is whether you could repay your current unsecured debt in 5 years if nothing at all changes about your income, the balances, or the interest rates. Of course, timing plays a role here too. It's not ok to run up more CC debt than one can handle and then turn around to file bankruptcy. But that's not the same thing as dealing with a mistake from your past by seeking protection in bankruptcy court now. 

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https://upsolve.org/learn/pros-cons-filing-chapter-7-bankruptcy/ is a good place to start! 

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Devyn, I commend you for being REAL! The first step is acknowledging that some poor choices were made along the way. Very few would admit that, yet we ALL have made some poor choices during our life journey. I am reading GREAT NEWS in your post because you KNOW who it is up to learn new habits, such as setting up a budget and STICKING TO IT.  Since I filed Chapter 7 in 2020, I have "raised" $30,000 by pivoting and working side gigs. Sure, I was the beneficiary of the Stimulus payments, but that same $25K (the debt you say you have) was "raised" in less than a couple of years' time. We are all different animals in how we live life, but I will give you a personal opinion based on your intelligent post that you can pay that off. That's just my opinion! Good luck in making your decisions ahead. :-).  P.S. There is a https://my.upsolve.org/rooms/19 forum section in this Community that just opened. I look forward to seeing you there!  

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One thing that a lot of people think about is their credit score- this can be really important for things like applying for housing. Here's our https://upsolve.org/learn/rebuild-credit-after-chapter-7-bankruptcy/

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Upsolvers, what else has helped you after discharge? 

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I saw that there's a tool that helps people build their credit by giving them a loan

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^ yup! a credit builder loan! 

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Check out https://www.seedfi.com/, I've heard they have some of the best rates amongst the credit loan tools.

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Julie, I was discharged in July 2020 but after I had completed my Questionnaire, I worked on my "new" budget --- life AFTER Chapter 7. My preference is Mint, a free app but there are many budget tools out there. I opened a Chime Credit Builder account and it provides me with a Visa credit card but is SECURE meaning I'm drawing on my own funds and building credit. I'm just now completing my 2nd year of using this card and I have had no complaints at all! I also applied for an installment loan from Self, Inc. I call this "forced savings" because, when you make payments, you are actually paying YOURSELF. Yes, there is interest but at a decent interest rate while you make your monthly payments which are reported to the credit bureaus. So the credit and installment accounts help provide the "mix" of credit that the credit world likes to see. Lots more info, Julie! Let me know if you have specific questions about my rebuilding journey! Good luck! :-) 

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You may find this helpful as well: https://upsolve.org/learn/rebuild-credit-after-chapter-7-bankruptcy/

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Jeff Z, thanks for the heads up on Seedfi! I have two Builder installment loans already and don't want a third so I will payoff one and open the other to get slightly better rates. :-). 

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If you're like me and never heard of a credit builder loan until you came to Upsolve, this article https://upsolve.org/learn/credit-builder-loans/ is a great introduction to the topic!

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Jacqueline, I had never heard of them either but the concept is novel and, if followed wisely by us borrowers, it CAN BE a nice option when rebuilding credit. What it boils down to is weighing the "credit building" aspect with the interest rate they are charging so you need to shop credit builder loans too! Case in point: Jeff Z, an Upsolve Team Member suggested Seedfi (post above) and after going into my Creditwise account, I was paying TWICE the interest and I am supposed to be teaching this stuff, so never stop learning and seeking better terms no matter WHAT your economic status is! :-) 

Upsolve Community Member
One more thought. "Secured" credit cards and installment loans (working with your own money AKA "forced savings") I emphatically endorse, at least for me in the first 2-3 years after discharge? Why? While I learn better habits, what the best budgeting tools are, the best ways to build my "rainy day fund" etc, I am taking steps to improve my credit score. After this 2-3 year period of time, I may want to test the waters of practical unsecured lines of credit --- and if the interest rate has merit, only then would I take the plunge.

Upsolve Community Member
YES! I call it a "do-over" or "mulligan". No matter WHAT circumstances got us here, it's now our opportunity for a FRESH START and to learn strict budgeting, setting up a "Life Happens Fund" (rainy day), and getting daily control so wise decisions are made. Good luck --- plenty of karma pointed at you, Lisa! :-) 

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Love your energy, Lisa. Thank you for making this community a better place with it.

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So glad you're here <3