Which is worse, foreclosure or Chapter 13?
Which is worse, foreclosure or Chapter 13?
There's no question that a foreclosure is a big blow to your credit. It will stay on your report for seven years, and it can be difficult or impossible to qualify for other loans in the meantime. But when you compare the two, Chapter 13 is likely the better option. That's because in bankruptcy, your debts are forgiven, but in foreclosure you still have to pay them back—no matter how long it takes.
Chapter 13 allows you to pay back your creditors within three to five years. It allows you to get rid of some debt, like auto loans and medical bills, that aren't forgiven in a bankruptcy. And although the filing fee is higher than it would be for a Chapter 7 bankruptcy, there are no payments while the plan is in effect.
Chapter 13 also offers flexibility with taxes and gives you more time to get current with payments on taxes that were not paid by their due dates (like property taxes). You can even hold onto assets like computers and furniture as part of your repayment plan.
If you have any questions or need a Foreclosure Attorney, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
