What's worse, bankruptcy or foreclosure?

Question

Should I file for bankruptcy or let the bank take my house? What is the damage (beside the credit) on long term, or short term?

Answer 1

Someone asked that before:

http://answers.yahoo.com/question/index?...

Sounds like bankruptcy might be better. Foreclosure could leave with no home plus owing the bank any remaining balance they weren't able to recoup from the sale of your home.

Answer 2

im only 14 but i guess common sense tells me foreclosure is bad... you lose your house and stuff but if you still have some money in the bank you can rent out a small apartment... kinda a second legde to grab onto

Answer 3

Bankruptcy is on your credit report for 10 years while a foreclosure is on the credit report for 10 years. If you file a bankruptcy, either a chapter 7 or chapter 13, you can keep the house with the bk filing. Depends on your income and what you would qualify for. If you are current on the loans and qualify for a chapter 7, you reaffirm on the loan and keep the home. If you qualify for a chapter 13, you pay into a payment plan which usually runs 3 to 5 years, depending on income and keep the home, but a bankruptcy attorney is the one that can answer the questions on what you would qualify for....They look at your pay stubs for the past 6 months, assets, list of your debtrs and last 4 years of taxes. This reviewed they will tell you what you qualify for. If you let the house go to foreclosure, and the bank seeks a judgement for the balance of the loan, bankruptcy is the only thing to stop them from getting the judgement against you. Long term, your credit report shows the bankruptcy filing for 10 years...debts for 7 years, short term...you get out of the debts, but...it's hard to re-establish once you have a foreclosure and/or bankruptcy. It takes hard work and discipline to re-establish your credit and get out from under the bk filing. You can review this website..   www.bcsalliance.com  it has great information on debts, credit and bankruptcy information and the info on different chapters of bankruptcy filings.....Good Luck!