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Ch. 7 bankruptcy and foreclosure

Posted on: 24th Jan, 2010 12:31 pm
We hired an atty and filed for a Ch. 7 bankruptcy which was done. We are surrendering our home as part of the bankruptcy. We just received a foreclosure summons. I know we have to respond within 30 days, but what am I responding to? Help..very confused!
Give it to your Attorney and ask him if you need to be concerned.
Posted on: 24th Jan, 2010 02:21 pm
Hi Guest,

If you have surrendered your house as part of the bankruptcy, it will be foreclosed by the lender. If you want to keep the house, you need to reaffirm the loan. If you don't, your house will be foreclosed. This is the reason you have received the foreclosure summons. Talk to your bankruptcy attorney and he will tell you how to respond to the summons. However, since you are in bankruptcy, the foreclosure will not affect your credit scores. But the bankruptcy will remain on your credit report for 7 years.
Posted on: 24th Jan, 2010 09:18 pm
>>the foreclosure will not affect your credit scores

It will impact the debtors scores because it'll be another entry in the public records section of the credit report - and it'll be there for 10 years.

>>But the bankruptcy will remain on your credit report for 7 years

It'll be there for 10 years. Chapter 7's are 10 years from date of discharge, and chapter 13's are 7 years from date of filing.
Posted on: 25th Jan, 2010 07:41 am
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