Already on ArticleSlash?

Forgot your password? Sign Up

Which Is Worse Foreclosure or Bankruptcy? The Pros And Cons

 


Visitors: 785

You see, making a decision about which path to pursue depends on your evaluation of your individual situation.

Bankruptcy:

Pros:

  • Chapter 7 Eliminates Debt and allows you to keep any equity in your home. If your problem is primarily consumer debt, this may be the best option for you - if you qualify.

  • Chapter 13 restructures debt allowing you to pay off the amount in a way that makes sense for your family.

  • Filing for bankruptcy stops the foreclosure action on your home.

  • If you lose the home during bankruptcy, you will be able to qualify for a new mortgage in as little as two years as long as you keep your credit clean after discharge.

  • Many people find that their credit scores actually rise slightly after bankruptcy because there is new money available for purchases.

    Cons:

  • Many people who file for Chapter 13 fall out of bankruptcy and lose the court protection provided. This means that they often not only have the bankruptcy on their record, they also face foreclosure proceedings once again.

  • If you abuse the system - doing a “face filing" bankruptcy for the sole purpose of delaying the foreclosure, you may face fines from the court.

  • Bankruptcy stays on your credit report for ten full years - longer than just about any other negative credit mark.

    Foreclosure:

    Pros:

  • Stays on your record for just 7 years

  • Won't risk falling out of foreclosure and having both a bankruptcy and foreclosure on your record

    Cons:

  • You lose your home and any equity in it

  • Generally cannot get a new mortgage for at least 4 years.

  • Possibility of a deficiency judgment against you which will require a bankruptcy filing anyway

    If you're trying to decide which is worse, bankruptcy or foreclosure, you need to get the new report The Foreclosure Survival Guide which outlines the process of foreclosure and details many options homeowners facing foreclosures have. This free report will help you make smart decisions on whether to allow your home to go into foreclosure or whether to pursue other options. Get your free report today.

  • (401)

    Article Source:


     
    Rate this Article: 
     
    Pros And Cons Of LCD Televisions
    Rated 4 / 5
    based on 5 votes
    ArticleSlash

    Related Articles:

    Pros and Cons of Bankruptcy

    by: Bruce Valentine (August 15, 2007) 
    (Finance/Bankruptcy)

    11 Bankruptcy Pros and Cons

    by: Justin Cecil (July 10, 2008) 
    (Finance/Bankruptcy)

    Pros and Cons of the Deed in Lieu of Foreclosure

    by: Harry Faulkner (July 29, 2008) 
    (Real Estate/Foreclosures)

    Social Networking Sites Pros And Cons, Just Pros Actually!

    by: Thomas Paylor (December 16, 2010) 
    (Arts and Entertainment/Photography)

    Pros and Cons of the Age Gap

    by: Graham Billingham (April 17, 2007) 
    (News)

    PPC – Pros and Cons of PPC

    by: Raymond Nesa (April 05, 2007) 
    (Internet and Businesses Online)

    Netflix The Pros and Cons - what more could you want?

    by: Robin Chauhan (January 19, 2012) 
    (Arts and Entertainment/Movies TV)

    New and Used Stairlifts Some Pros and Cons

    by: Wally Pahong (July 02, 2008) 
    (Health and Fitness/Home Health Care)

    Pros and Cons of IT Outsourcing

    by: Ramy Stuart (May 28, 2014) 
    (Business/Outsourcing)

    Pros And Cons Of LCD Televisions

    by: Victor Thomas (May 15, 2007) 
    (Communications)