Following Bankruptcy

I’m 36 and currently buying my first house. In my late 20s, I had to file for bankruptcy, and it’s amazing how life’s challenges can lead to a spiral of debt. While I wasn’t perfect with my finances, the struggles and stress of trying to manage my debt taught me valuable financial planning and techniques. Unfortunately, I still had to file for Chapter 7.

A few unfortunate events can really disrupt your finances, especially when you earn less than $55,000 a year. I want to share that it wasn’t as daunting as I initially thought. I was deeply in debt and had no interest in credit, but the stress of managing bills and basic necessities was overwhelming and caused significant anxiety. After bankruptcy, that burden was lifted. I no longer worried about loans or credit and used the financial skills I developed to improve my situation. Bankruptcy is designed to help in such circumstances, and I want to reassure anyone going through similar struggles that it’s not as bad as it seems. You can still achieve things like buying a house. For example, I bought a new truck in 2020 with a 680 credit score, even with bankruptcy on my credit report.

I thought I would spend the rest of my life fasting five days a week, but after filing last month, I can now save again. This offers me some hope. It was just a week and a half ago when I filed on March 30. It’s amazing how thrifty being completely poor actually makes you after filing for bankruptcy.

I wish I hadn’t been forced to do it. but I’m happy I did. Breathing is much easier now.
I’m incredibly envious of you. One day, I hope to be as lucky as you are.

Although I’m afraid of having no credit, I genuinely look forward to the day when my house and my education loans are the only significant sources of debt I have at any given time. I simply have no idea how old I’ll be when it does.

I intend to save a tonne of money till my debts are forgiven in order to restart my life. Prior to becoming a widow, I was fully debt-free. My goal is to make up for the chaos of the past three years, including navigating this bankruptcy, in ten years.

By the time I was 28, I had filed for Chapter 7 bankruptcy twice. I understand how quickly things can spiral out of control—especially when you’re making under $30,000 a year and not managing your finances well.

After going to college, I turned my life around, became much more responsible, and worked on rebuilding my credit. About 12 years ago, my second bankruptcy dropped off my credit report, and I had several years to improve my credit.
I went from a credit score of 385 to a current FICO 8 score of 843. Although things could change again, I’m grateful for how well I’m doing now.

Thank you for sharing your story and providing some hope to others.

I needed almost five years to get 725. With my record of bankruptcy, it wouldn’t budge much after that. That dropped off, and it increased by 100 points. For years now, it has been bouncing between 825 and 845. I purchased an automobile, which I later exchanged in for a brand-new one. I haven’t had a car payment in three years since I paid that one off. Eleven credit cards are in my possession. It really helps that I make considerably more than $30k year. It starts to climb up once you open about three credit cards, get a car loan, and make regular payments for a few years.

1 Like

How does bankruptcy impact the rental market? My friend is considering it, but he’s terrified that it will put him on the blacklist.

1 Like

You know, I never had any trouble having my rental application accepted. From the age of 26 till now, at 50 years old, I have lived in numerous apartments and houses with no problems. To be honest, I think that’s probably because of my consistent, reliable job history. I began working a full-time job when I was fifteen years old, and I have never gone without one since. That probably helped me with any credit problems they noticed, in my opinion.

I’ve been waiting to do it because I don’t want anyone to find out. I have already damaged my credit, so I’m not sure why I’m putting it off.

After a few years of hitting one low point after another, I went from making $100,000 per year to having to file for bankruptcy. Even while I acknowledge that I’m mostly to blame, it’s still embarrassing.

I’m in the US, and I declared bankruptcy in 2017 due to debt from credit cards. I ought to have taken action much sooner. No, my parents’ excessively high APR credit cards aren’t even being used. As I planned to pay it off a month after filing, I was permitted to keep my automobile. After a few years, I received a few credit cards to help me. A year and a half ago, my spouse and I were able to purchase a home because our credit scores were in the 700s.