It has been two months since my last update. Things in the bankruptcy arena tend to slow down a bit aftrer discharge. We're in our new home now, and have been for about a month and a half. Details are much as I explained them in December. We're currently renting the home, with a purchase agreement that will go into effect within the first twelve months. The rental arrangement is much as if we already are the home owners.
Getting out of the lease for our old home was only a minor issue. We had lived there for approximately five years, and were on a month-to-month lease at the time, so our only obligation was a thirty day notice (with rent) before vacating the home. We did that, and the landlord actually complained that we weren't getting out a few days earlier so she could re-rent the home at the beginning of the month (our original projected vacate date was January 4).
What was most surprising of all was her reaction to the fact that we were moving out in the winter. Her comment was something to the effect of, "I always treated you guys right, except for that one time when I tried to sell the house. I can't believe you would do this to me, moving out in winter. You try to do somebody right and this is the thanks you get." Talk about being furious!
It turned out that we were able to get into the new home on December 28, so I took twelve days of vacation and we began moving. It felt like a much longer process than it actually was, but we finally got everything moved and dropped off the keys to the old place on New Years Day.
HAPPY NEW YEAR!!!
And so it has been. We have loved the time in our new home, and my wife is already making color choices for paint in every room. She has gone nuts trying to pick out her window treatments and wanting to change out light fixtures here and there. And she wants to buy a new black refrigerator to match the appliances in our new home.
So what has happened on the credit front? Well, I have been attacking the credit repair process. I have looked into the possibility of credit repair companies, but have rejected those. They seem to be nothing but a costly way for a lazy person to have someone else do what he can do easily enough himself.
By simply logging on to
view your credit report online, you can submit errors on your report for investigation, and you can do so with all three major credit bureaus from one site.
THIS IS THE ONLY SITE AUTHORIZED UNDER THE LAW THAT ALLOWS YOU TO VIEW YOUR CREDIT REPORT ANNUALLY FOR FREE. ACCEPT NO IMITATIONS. Others will look like this site, but will trick you into signing up for some kind of credit protection scheme that you don't need in the first place. It's just another way for services like these to tack more debt onto you. Don't do it.
I have filed for investigations on nearly every item on my credit report with all three agencies. Those investigations take approximately 30 days to complete. At that time, they provide you with an updated copy of your report and give you the opportunity to file for additional investigations, if needed. You can pay more to actually receive your credit
score if you like -- that part isn't free -- but if you simply address the issues that need correction, the score will improve itself.
Also, I opened a secured credit card. This is a credit card that is guaranteed to the lender by a savings account that you open with them or a partner bank for an amount equal to the credit limit on the card they issue. Many banks offer secured cards. You may want to check out one or more of the following:
I cannot specifically endorse one bank over another, and naturally you must research which choice is right for you. The above banks are all reputable banks that offer secured credit cards. You can expect to pay some sort of fee, whether they call it an application fee, or an annual fee, or some other name of their choosing, but if you shop around you can find a very reasonable fee to open the account (mine was less than $40). They will make you feel like they are "approving" your credit, but for most of these institutions, all the approval needed is an associated savings account that guarantees they aren't taking any risk.
The above mentioned banks will report your payment performance to all three of the major credit bureaus.
This is the most critical part of any secured credit card. The only way to rebuild your credit is to use it. Do not waste your time with someone who will not report your payment performance -- good or bad -- to the three bureaus.
Another important note! It is not necessary to carry a balance on a card to improve your credit. When you receive your secured card, you should do four things:
- Sign the back of the card immediately
- Call to activate the card
- Use the card to make one small purchase or utility payment that you can immediately pay off
- Put the card away where using it will be very inconvenient
My wife and I use our secured card to make one payment every month, whether it be for a utility or for gasoline or some similar expense. We then immediately log onto the issuing bank's website and make full payment in the form of electronic check from our checking account.
Don't ever wait to receive a statement before paying your bill. By the time you've received your statement, you have already incurred finance charges and interest. The only way to avoid such charges is to keep your card balance at zero every month when the bill is cut.
Rebuilding your credit is easy, if you have the drive to do so and take a little time to do the research.
And remember, you must always be wary of those past creditors from your pre-discharge days. Some of the less reputable ones will still pursue and try to scare you into making payment.
If you enter into any agreement to repay any debts you incurred before your bankruptcy was discharged, those agreements are legally binding and those debts are once again valid. After paying so much money to get your debts discharged in the first place, don't let anyone trick you into agreeing to accept those debts as valid again.
We received in the mail today a statement from someone claiming to have purchased a debt we owed to Capitol One prior to filing for bankruptcy. That debt was discharged in bankruptcy in August of last year.
This will happen. When it does, don't worry. You have the full power and authority of the United States Court System standing behind you. If you included the debt in your bankruptcy filing and your bankruptcy has been discharged properly, you no longer have any obligation to repay this debt.
I placed a simple phone call to the company that sent the letter. I was very polite to them, and when they asked if I would like to take advantage of their settlement offer, I replied, "No, I'm calling to inform you that this account was discharged in bankruptcy six months ago." You should be prepared with the case number, which district the bankruptcy was discharged in, whether it was an individual or joint filing, when it was discharged, and the name and phone number of the attorney who represented you. After providing this information, if the creditor contacts you again,
they are breaking the law and can be held responsible for paying punitive damages.I guess that's about all for this month's update. I'll try to do these on at least a monthly basis. If you have any questions, please feel free to post them in the comments section (please, no personal information about yourself), and check back for more information.
