Had a decent FICO just over 800. 2 years ago, my wife lost her job. We applied for a loan modification, but Chase drug their feet so long that we ended up in trouble. We sold a cabin to keep up payments, then we began liquidating savings, etc. Then about 9 months ago, my company closed their local site and we had to relocate.
I told Chase about it, we tried selling, if we had gotten the sale, it would have taken care of the financial delima (home plus credit cards). (We had incurred over $30k in home improvements that was placed on or credit cards). When Chase heard about us having to relocate, they said we had to do a short sale, tried it – dropping price till it was upside down. Finally got a buyer that put in a contract. Chase turned them down.
We were finally put in a situation where we could not make payments to the credit cards, who were now increasing their monhly minimum to three times what they originally were, and we stopped making the Home payment in January (Chase told us they understood, and that we just needed to coninue the Short Sale proceedings till they got a buyer that would make the transaction a wash).
With the monthly $1800 for Mortgage, and now credit card bills exceeding $1000, and the current bills (Renting an apartment) at nearly $2300 a month, and my income at about $2380 a month, we were advised to file for a Chapter 7.
Now…. We are incurring medical bills, We checked into the Lending Club, but they do not accept anyone that has filed for bankruptcy, We no longer have any credit cards, and cannot apply for them for a couple years, no body locally will loan mone to us. The Dr, is wlling to stretch out payments over 6 months, but that means payments over $250 a month. We’ve streamlined all of our monthly expenses and have gotten ourselfs down by dropping phone service, Satellite TV, cell service, and other expenses till we can afford about $175 a month and still get by comfortably, we can show a bank that on pper, but because of the bankruptcy, no one will take us. Our FICA score must be horrible. Up till all f this happened, we never missed a bill, and for over 35 years had an excellent credit listing.
How do you increase you credit rating after bankruptcy if no body is willin to lend to you?
Where can one go for a loan (about $2,500) for medical expenses, if you had filed for bankruptcy recently? [Lending club will not accept me, local banks will not accept me].
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.