on Dec 13th, 2007Bankruptcy foreclosure
Most people know there are two types of bankruptcy processes for most folks, chapter 7 and chapter 13.
A chapter 7 gives you a discharge from your unsecured debts. So you don’t owe them anymore.
A chapter 13 requires you to pay a percentage or all of the debts back over a three to five year period.
Chapter 7s used to be easy but not so much anymore. You have to pass a “means test” to file chapter 7. If your credit card debts and other debts exceed about $336,000, you can do a chapter 7. And if your income is too low, you can file a chapter 7.
Regardless of which type of bankruptcy you are pursuing, your credit will be affected the moment you file. Even if your bankruptcy petition is dismissed later, the bankruptcy filing will drop your FICO score often around 100 points or more.
A lot of people try to pursue a bankruptcy petition in order to stop foreclosure and while it temporarily halts foreclosure, it doesn’t stop it for very long. You will take comfort in consulting with a bankruptcy lawyer and always do so and don’t take advice from articles like this one.
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