Hi everyone, I’m thinking about filing for either Chapter 7 or Chapter 13 bankruptcy. Right now, I’m trying to settle my debts directly with creditors, but I’m struggling. I feel like I’m already bankrupt—I’ve been working with a debt relief company for over a year, but they’ve been super shady. They told me my monthly deposit wasn’t enough, even though they promised when I signed up that it would be fine. Now they want me to pay more, and they’ve stopped helping with creditors who sued me. It’s been a nightmare.
I want to hear from people who’ve filed before. Was it harder to rent a home, get a car loan, or deal with credit and utilities after filing? Did it make things more expensive, like with higher interest rates, deposits, or insurance? And how about judgment from others? I’ve heard Chapter 13 stays on your credit for 7 years and Chapter 7 for 10 years—that feels so overwhelming. I’d love to hear about your experiences and advice.
I filed for Chapter 7 about 9 years ago after a tough time financially. It’s true that some banks, like Amex, won’t work with you for a while, but the relief was worth it. Within three months, I got a car loan with a decent APR, started with a secured credit card, and had a $5k limit on an unsecured card the following year. Most lenders won’t hold it against you forever, and within a year or two, I bounced back completely.
@Freddie
Thanks for the details. Funny enough, Amex is one of my accounts, and I doubt they’ll want to work with me again no matter what I do. I also worry about keeping my car since I’m still making payments on it. The public record part of bankruptcy scares me too—what if someone Googles my name and finds out? It feels like public shaming. But I also feel like I need the fresh start.
@Bao
You can keep your car if you reaffirm the loan, but be cautious. Reaffirming means you keep paying, but it won’t help rebuild your credit, and they can still repossess it if you miss a payment. Most lenders won’t take your car right away, but it’s a good idea to check with a lawyer before making a final decision.
@Freddie
Thank you for explaining. I’ll look into whether I can refinance the loan with a different bank after filing. My car is reliable and almost paid off, so I’d hate to lose it.
Bao said: @Freddie
Thank you for explaining. I’ll look into whether I can refinance the loan with a different bank after filing. My car is reliable and almost paid off, so I’d hate to lose it.
Refinancing after bankruptcy might be tough, but it’s worth checking. The value of the car and your current loan balance will matter. What’s the car’s value and your monthly payment?
@Freddie
The car’s value was about $18k when I bought it, but the loan was for $21k due to added warranties and extras. My payment is $360 per month, and the loan is half paid off. The car has been in two accidents but was fully repaired.
@Bao
That could complicate refinancing since lenders look at the loan-to-value ratio. If the loan is higher than 125% of the car’s value, it’ll be harder to get approved. You could still reaffirm the loan, but it might slow down rebuilding your credit.
File Chapter 7 and don’t stress too much. You can get a car loan right after the discharge, which takes about three months, and buy a house within two years. Credit cards will be available again pretty quickly too. I’ve filed for Chapter 7 twice, and it’s not as bad as people think.
@Vine
That’s reassuring, but I’m still worried about the stigma. The idea that bankruptcy will follow me for 7–10 years feels overwhelming. And I’m terrified of it being a permanent public record that anyone can find online.
@Bao
Honestly, most people don’t care, and it’s not easy to find unless someone goes out of their way to search court records. Focus on your fresh start—it only affects your life for a couple of years, and then you’ll be in a much better place.
What kind of debt do you have? If it’s mostly student loans, bankruptcy might not help much since they’re harder to discharge. I’d hate for you to go through the process and still have most of the debt left.
@Brice
It’s mostly credit card debt—around $15k. I also have a small $2,500 student loan, but it’s not a big concern right now since I’m still in school. I doubt it could be discharged anyway.
Bao said: @Brice
It’s mostly credit card debt—around $15k. I also have a small $2,500 student loan, but it’s not a big concern right now since I’m still in school. I doubt it could be discharged anyway.
For that amount, you might try negotiating with your creditors directly. Explain your situation and see if they’ll lower your interest rate or set up a payment plan. I did that years ago, and it worked out well without hurting my credit.
@Brice
I regret going with a debt relief company—they made things worse. I might try reaching out to the creditors myself this time and seeing if they’ll settle for a lower amount. Bankruptcy is my last resort if that doesn’t work.
I filed Chapter 7 in 2017, and it was one of the best decisions I’ve made. I’ve rented two apartments since then, got credit cards again, and even bought a house two years ago. I also kept my car because it was almost paid off. Do what’s right for you, and don’t worry about what others think.