What is worse for your credit bankruptcy or a foreclosure?
What is worse for your credit bankruptcy or a foreclosure? Min Austria Assistant at Ascent Law LLC Both bankruptcy and foreclosure can lower your credit score, though bankruptcy is slightly worse. Both are reported for seven years and can cause similar trouble in getting loans and favorable terms. The best way to determine which will be better for you is to talk with a qualified bankruptcy attorney or financial adviser. They can assess your unique situation and offer advice. While foreclosure can cause fewer negative impacts on your credit, it is still an undesirable option. After a foreclosure, you will likely need to buy another home and a new mortgage lender may not want to work with you. When making a decision about a new mortgage, lenders will review your credit profile. If you have a lower credit score, you are seen as a higher risk than someone with higher credit scores. If you're struggling with a mortgage and are worried about foreclosure, there's an option called a sh...