which is worse, Bankrupcy or Foreclosure ?

Date: Fri, 09/14/2007 - 16:55
Submitted by on Fri, 09/14/2007 - 16:55
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I am 60 years old, Single, and recovering from my second heart attack. Had to go to a lower stress job with lower pay. Bankrupcy, or Foreclosure is evident. Which is the best way to recover?


Both bankruptcy and foreclosure will have a major impact on your credit rating. However, you have a decision to make - keep your house, or not?

Chapter 13 Bankruptcy may allow you to keep your home, provided your income can pass the means test that will be administered by your bankruptcy attorney. The bankruptcy laws passed a few years ago now state that your income must be subjected to a means test to determine which Chapter of Bankruptcy you will qualify for. If you are interested in saving your home, however, you may not have too many options in which way you go.

If you choose to allow the house to go into foreclosure, you will obviously have to surrender the house, and move elsewhere. Depending on where you live, that can take a varying length of time to happen. In some states, foreclosure can happen pretty quickly - in others, you can remain in the home for up to a year without making payments while the wheels of the foreclosure machine grind away, before you HAVE to move out.

Either one of these decisions will have a negative impact on your credit report for several years. I don't know if one is actually worse than the other - both are considered a bad mark on your report.


Submitted by SUEBEEHONEY70 on Fri, 09/14/2007 - 17:14

SUEBEEHONEY70

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