"Loan For Unemployed" Discussion

Upsolve Community Member
Hi Karen! I love the responsiblilty shown in adjusting your vehicle expense! Yay! Perhaps this article in the Learning Center will provide some guidance: https://upsolve.org/learn/can-i-transfer-property-before-bankruptcy/ You are on the right path and I wish you the best! :-)

Upsolve Community Member
If you're wondering if you can keep your new used car, I recommend reading the Upsolve article https://upsolve.org/learn/can-keep-car-file-bankruptcy/

Upsolve Community Member
Hi Donna, are you talking about doing this by the end of January? Here is an article from the Upsolve Learning Center: https://upsolve.org/learn/what-is-a-chapter-13-bankruptcy/ of course you know what it is but I am attaching this because it addresses some options you have. 

Upsolve Community Member
The Upsolve Learning Center also has an article on https://upsolve.org/learn/when-surrender-car/ Again, I realize you are Chapter 13 but between these two articles and doing some additional research, perhaps you can get the details on what you need to do. :-)

Upsolve Community Member
Hi Mark, yes I plan to cancel my Chapter Bankruptcy case because 1. I am unable to keep up with monthly payment due to being unemployed and 2. my car’s engine needs replacing and I cannot afford a replacement engine (extended warranty has expired). I just wanted to know can I surrender my vehicle before my Chapter 13 bankruptcy case is dismissed?  Thank you for responding to my post!

Upsolve Community Member
You can surrender your vehicle any time you like - and chances are once the case is dismissed they'll just send someone to come and repossess it but keep in mind that the primary benefit of surrendering a car in bankruptcy is the bankruptcy discharge. Without it, the bank can still seek to collect the balance remaining on the car loan. 

Upsolve Community Member
Donna, Andrea knows this stuff inside and out. Go with it! :-)

Upsolve Community Member
Thank you Mark and Andrea!  Will surrender vehicle immediately and have bankruptcy case dismissed at the end of the month.  When I become employed I will file for Chapter 7 on my own and utilize Upsolve process for that!  Again, thank you for ALL that you do!

Upsolve Community Member
Hi Ashley! Here is an article from Upsolve's Learning Center that talks about The Brunner Test https://upsolve.org/learn/bankruptcy-eliminate-student-debt/

Upsolve Community Member
Another article I recommend is https://upsolve.org/learn/what-is-an-adversary-proceeding-in-bankruptcy/ The Adversary Proceeding is a separate lawsuit in conjunction with your Chapter 7 filing and you need to know what you are doing which will require self-study and/or hiring an attorney. Historically, this has been difficult to prove extreme hardship, but as the Covid Era has now changed economic well-being, the Bankruptcy Court is granting more and more hardships through the Adversary Proceeding.

Upsolve Community Member
HI Ashley, Student loan debts are only dischargeable under extreme, and very specific, conditions. Here is an Upsolve article on this topic: https://upsolve.org/learn/bankruptcy-eliminate-student-debt/

Upsolve Community Member
This would be filed as part of an adversary proceeding- lots of helpful resources on that shared here by Mark and Erin! 

Upsolve Community Member
mine are almost the reason for the bankruptcy combined with several vehicles dying prior to the loan ending. I have no income, I was approved for unemployment and now my work is appealing it, i'm fighting them on it kickign and screaming, and also looking for a job, but i have no vehicle now so my options are severly limited. :( 

Upsolve Community Member
Mark is incredible and has a lot of knowledge and experience to share! Ask away!! 

Upsolve Community Member
Thank you for being here to help folks, Mark. So many people will benefit from your help. 

Upsolve Community Member
I appreciate the kind words, Rohan and Claire. Note: Like Upsolve, my role is for education purposes only and not intended to be professional advice. 

Upsolve Community Member
Thanks for sharing, Mark!! 

Upsolve Community Member
Student loan debt is so complicated, your help is certainly needed and appreciated! I'm excited about the New York legislation that will help release transcripts to people with student debt. https://upsolve.org/learn/getting-school-transcripts/ is a struggle when you owe student debt! 

Upsolve Community Member
The DOE is meeting this week and I've been able to sit in on some industry sessions. This is why you might have heard Schumer, Warren, and the usual folks repeat their call for $50K forgiveness. I have my opinions, thoughts, and intel but I'll save it since crystal balls can be worthless. HOWEVER, there are some measures being talked about that would benefit lower income undegrads so that's a plus! Stay tuned! :-) 

Upsolve Community Member
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/

Upsolve Community Member
Upsolvers, what else has helped you after discharge? 

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

Upsolve Community Member
^ yup! a credit builder loan! 

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

Upsolve Community Member
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! :-) 

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

Upsolve Community Member
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. :-). 

Upsolve Community Member
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!

Upsolve Community Member
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.