this chapter 13 thing, and other debts that are not the problem

[Zoe Girl]

Sigh, so have accepted this chapter 13 thing, I wonder if I will ever in this lifetime get my credit restored. I am realizing that a few late bills and a low income make that unlikely even before this. I have some sour grapes because I am pretty sure my ex's credit is fine even after bouncing some checks to me and paying child support just a little late because at the end of the day he has a high income. Meanwhile I make sure I have money from him and that it does not bounce before paying anything. I could do a lot better, part of that sour grapes is affecting me and being on time with everything as well. Okay enough psycho-babble.

So here is the deal, I have a credit card with about $500 owed on it and a care credit for dental work with $1,800 on it. I want to keep those account and pay them in addition to the amount I am paying into the chapter 13. If I don;t then I have no credit card and no access to credit for the dental work (we are probably caught up). On the other hand they are all getting a percentage of what I am paying into the BK agreement anyway so they are not walking away with nothing. Plus this is my chance to just get paid off with one payment, It stings. i DID have a plan to pay these things off and I was ALMOST there all on my own with a low income. I just need to decide if this is a stupid move to save my integrity or a smart move so I can at least try to keep a credit card for emergencies since it will take time to recover. As it is I do not keep my emergency money in a way that I could access it like a credit card so i have used the card and then transferred money.

Advice welcome

[SteveinMN]

Zoe, I don't have an answer for this situation for which I can be confident. But I do know there are those credit cards that you can pay into and use when you have a balance. I don't know what the interest rates or fees look like on them, but interest rates may be of no consequence if you're using the card only for convenience (that is, the vendor requires a CC and you'll be paying it off in that month or two). That doesn't address the dental balance, but if you could get rid of the current CC debt and then pay a little at a time into one of those so you could have it for emergencies?

[iris lilies]

Pay your dentist in full. He is a small businessman who extended you credit when you needed it for important health treatment. Your entire family have bad teeth, according to your posts. Pay your dentist fully not just the "percentage" they are getting in your bankruptcy action. Of course I don't mean "pay your dentist fully & immediately" because hey, you don't have the money now.

That's my ethical advice. Can you do this legally and still work within the definition of the bankruptcy? I don't know, this isn't legal advice.

[RosieTR]

I would say, keep an emergency fund first and foremost, and not as the remaining available funds on a credit card. Decide, in advance, what constitutes an emergency: car repairs? an unexpected health expense? a failed meal? Some definitions leave more wiggle room than others.

In terms of building credit is it more advantageous to pay off the cc or the dentist? Although it may be an ethical/moral consideration, with some debt repayments there's also a legal ramification of paying more than is owed. I don't know any details but you should double-check this before paying in full.

Try as best you can to pay thing forward. IE, be paying your bills with money you got last month from the ex so you don't have to be wait or late. Maybe just target one bill at a time, like right now whatever you have for heat (which will presumably drop in the summer if it ever gets warm!). Check about the late payments from him getting recorded because there may have been changes somewhat recently about that. I know there was talk about adding some bills to credit reporting, like rent and such. Hopefully also child support.

As for that, what are the kids doing? Can any of them start to help with their own stuff by doing simple jobs (babysitting/petsitting, yard work, fast food, lifeguarding, etc) for the summer or at least now and then? Maybe they already are, in which case kudos to you and them. If not, a 1:1:1 might be good-one part to share with the family, one part to save for themselves and one part to spend.

It may feel like forever but if you keep working on it, and we know you are, you'll get there! Even if you have the dreaded 7 years on your record, things do improve only a year or two in if you are showing progress.