| For anyone who might be thinking of whether to | | | | issues for your to consider. Many times, you can |
| file personal bankruptcy, it's a good idea to think | | | | file bankruptcy and lose your home in foreclosure |
| of the long term impact of bankruptcy versus | | | | anyway, as a secured mortgage lender can ask |
| any other way of fixing your credit problem. One | | | | the bank to allow them to sell your home and get |
| of the big issues facing many people today is the | | | | paid that way. This would happen in Chapter 7 |
| threat of foreclosure on their home, compared to | | | | more than Chapter 13 bankruptcies. In Chapter 13 |
| bankruptcy. It's not an apples to apples | | | | bankruptcies, you will be setting up a repayment |
| comparison, but here are some issues to consider. | | | | schedule, which could help you keep your home |
| First, foreclosure is another debt, just like a credit | | | | and make payments according to the repayment |
| card. If you default on your home loan, the lender | | | | plan you set up with the bankruptcy court. In this |
| can take your house, or foreclose on the note. If | | | | case, the bankruptcy court could stop your home |
| you are behind on a car loan, the lender will take | | | | fro being sold, if you are making approved |
| back your car. Either of these are major bad | | | | payments, thereby avoiding foreclosure. |
| credit events, and will result in a drop in your | | | | Whether to file bankruptcy or let your home go |
| credit score. | | | | to foreclosure will depend on your specific |
| Bankruptcy however is a situation where multiple | | | | situation, your income, your total debt, and your |
| debts are either discharged, or wiped away, by a | | | | other expenses. It's best to make an appointment |
| bankruptcy court, or you instead set up a plan to | | | | with an attorney to discuss whether a bankruptcy |
| repay. While credit agencies won't specify which is | | | | could actually help you save your home and avoid |
| worse or by how much, avoiding multiple debts in | | | | foreclosure. You might decide that your primary |
| bankruptcy means that many creditors were left | | | | concern is to save your home, and not worry |
| unpaid. For secured creditors, however, like | | | | about your credit score. You can rebuild your |
| mortgage companies or car financing companies, | | | | credit score after bankruptcy, but buying a home |
| they did get back a portion of their loan through | | | | or saving the one you have is much tougher. Talk |
| repossessing your home or car. | | | | with a credit counseling agency or bankruptcy |
| If you aren't sure whether to file bankruptcy or | | | | attorney before you decide whether bankruptcy |
| let the bank take your home, there are multiple | | | | is worse than foreclosure for you and your family. |