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kenner1939

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Bankruptcy filing
I am filing for bankruptcy so why is my credit score still going down?

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That's what BK does. It ruins your credit. Also for the next 5 years, you will basically have no payment history and for the next 10 years the BK will be on your credit report. You can not finance virtually anything for the first 5. Not unless you get it approved by your BK lawyer.  Sounds like you should have done your homework first.

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Bankruptcy

Bankruptcy is NOT an easy choice to make. Most people believe that THEY can just file a Chapter 7 and be done with it, but thats not how that works. After October 2005 the current Bankruptcy law went into effect that now requires the DEBTOR to take a MEANS TEST.

This test takes a snapshot of your "INCOME SOURCES" (Earned Income, Pension, Disability (Yes VA, SSDI) and other sources of Unearned Income). Sure there are many that believe Veterans Disability, Social Security Disability and Military Combat Related Special Compensation (UNTAXED MILITARY RETIREMENT CHECK) cannot be touched. At least here in Tennessee, the Trustee's Office has sucessfully argued that this is still DISPOSABLE INCOME that can be used to repay your CREDITORS at 100% instead of a court negotiated repayment.

Be sure that this is the ONLY OPTION available before you committ to this. Once in this plan you CANNOT OBTAIN A DEBT unless you SPEAK to your ATTORNEY prior to ASSUMING a NEW DEBT.

At the end of your confirmation hearing, you will be required to attend a Financial Readiness Class. This class goes into detail what I just explained here. Your goal is to live within your means and repay as much or all of your debt while in the plan. My credit score was in the low 500's and is now 690 while still in my CH 13 with less than 8 months remaining.

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