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Effect on credit after discharge from chapter 7

Posted on: 04th Feb, 2009 12:08 pm
I have filed a chapter 7. I now want to give up my house and include in bankruptsy. Once I am discharged, will credit report show just a Chapter 7 or will it slow show a foreclosure and be a double hit on my credit score?
Firstly, as far as I know, since, you have already filed bankruptcy under Chapter 7, it is not possible to include your house now. However, if your bankruptcy petition gets dismissed somehow by the court, you can refile bankruptcy after 6 months where you can include you home.
Since your house is kept as security for the mortgage loan, it will be foreclosed and so your credit report will reflect both foreclosure and bankruptcy. This will no doubt be a double hit on your score.
Posted on: 05th Feb, 2009 02:20 am
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