Discharged! Now what?

  • Thread starter Thomas Gagliano
  • Start date


Thomas Gagliano


Got my discharged paper in the mail today! It's a big relieve!

My goals are as follows:

-1 credit card ONLY, never try to get more! with reasonable credit
line (NOT GOLD card!)

-Buy a house in about 2 years

-replace my truck for a smaller new car (e.g. gas saving, no bells and
whistles stuff in the car!) need it anytime this summer!

Since I got my discharge (Ch. 7), do you have any recommendation how
to improve credit? do you know what is the FICO score right after
discharge? I know I will pay everything ON TIME! the only debts I can
handle is auto and home loans (along with 1 low credit line credit

Basically any recommendations are welcomed! (Please, I'm not going to
do "credit fix quick kind of stuff" I filed for bankruptcy, that's
it...it'll be on my credit file for up to 10 years!)

Thanks in advance!
Thomas G.




Congrats on your discharge, I received mine 1 month ago. It looks like
you already have a plan in place. My attorney who is also a financial
guru has given me some of these suggestions way back in January.

* If needing a credit card get one with no more a $1,500.00 limit. Place
this card in a place that only you have access to it, plan on using this
card for so called emergencies ie: car repairs beyond normal
circumstances etc.
* Find or utilize your banks free checking/debit cards. Train yourself
on using this card when needed but set aside enough cash for the normal
purchases that one experiences. I went to a seminar months back and this
suggestion was given. Get envelopes 5, 6 or 10? On each one place what
will be in this envelope cash wise. Auto gas, weekly food purchases,
daily food/lunch purchases, common bills, tolls (driving), misc.
purchases etc. They suggested not to utilizing your companies direct
deposit. What you do is get your paycheck figure out what you need to
use the cash in the bank for (gas/electric/water/rent/mortgage etc)
place that needed amount into checking and take home the rest in cash.
With this cash work out the envelope plan and then with what is left
place it into a safe place not to be touched. Some stated that the cash
that is set aside can be making more being deposited in a savings
account etc. The advisor stated that will come along in time but for now
the focus here is to get one self trained with their cash handling. He
continued by stating that having a daily/weekly/monthly and 3 month
spending plan will really do more good than bad. I know for many that
could be hard, it was for me at first but now after 3 months of doing
this I see how it really is helping me. I sometimes sit and think boy
where was this guy 6 years ago with these suggestions. Like many of you
poor habits or other situations put me in the financial mess that only
bankruptcy cured. My spending habits and money handling really did a 180
turn using his suggestions.

As for building ones credit right after bankruptcy, sit and think what
do you need with credit at this time. I hope surely it would be used for
emergencies and not for a new stereo system, or boat or television. I
also will be needing a new car soon, I am setting aside hard cash for a
down payment. Over the past month I have been researching how I may get
credit for a car. Everyone I spoke to stated that having money for a
down payment (10 to 20% of the purchase price) will lower the interest
rate and will up my chances on getting the loan. If you try to get a
loan without any type of down payment forget it. I looked into this and
was told if you don't have the money even for a minimum down payment
chances are your will be turned down or face a monthly payment that is
way more than necessary. If one is lucky enough and could afford to
purchase the vehicle outright then all the better.

It is funny some family members who don't know my financial situation
have commented that they noticed that I am much calmer now, not as
stressed out as before, I seem to spend money only when I need to. Have
I become cheap, not at all I am a single father who deals with the same
problems as most but I came up with my own plan on how I will use the
cash that I make. My attorney said to me sit down and figure out how
much money I would have right now if it wasn't for the bankruptcy
(interest rates, poor spending habits etc) God what an eye opening
experience! I tell you this I wouldn't have to be working right now!
My decision to file bankruptcy was the hardest thing I ever had to do
but now those days are long gone and I think it was a god send that it
happened. Now the only thing I look forward to is making sure I spend
only the cash that is available to me now and putting away what I

This may work for some, but in the long run any bit saved will only
help. Thanks for reading, I hope everything turns out well for you.


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