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Chapter 7 & Foreclosure

Posted on: 20th Apr, 2010 12:36 pm
I am currently in the process of preparing to file for Chapter 7 to clear 40K of credit card debt. The mortgage on my home is 140K and the value is not much more then that. I have had several Real Estate agents tell me that I would be lucky to break even anywhere in the next three years. Should I include my mortgage in the Ch. 7 and allow foreclosure to happen? Is this more severe to my credit rating then just the Ch. 7 alone?
Hi tommy,

As you're filing Chapter 7, you will have to include all your assets and debts in your bankruptcy filing. You can list the property in the market and check out whether or not you would be able to sell off the property. Both Chapter 7 and foreclosure would be mentioned in your credit report and will have their negative effects on your credit score.

Thanks
Posted on: 20th Apr, 2010 11:48 pm
Hi,

I can understand your state of mind, but is it really needed to file chapter 7?
Why don't you go for consolidation? There are companies who helps to consolidate debts. If you want to file chapter 7 then you have to include your mortgage. You can also check in the market the value of your assets so that you can sell off your property to pay off all your debts. Consult with a lawyer who can guide you better.
Posted on: 01st May, 2010 02:32 pm
Hi Tommy,

Rather than filing a bankruptcy, you can consider a debt consolidation. You can take help from a credit counseling company. Many counseling companies allow free counseling. If that does not work out, you can file bankruptcy. You will have to include the mortgage in your bankruptcy.

However, bankruptcy can have negative effect on your credit report.

Thanks,

Sandra
Posted on: 04th May, 2010 05:01 am
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