Is Bankruptcy better than foreclosure? Neither option will be easy, but let’s take a moment to weigh some of the pros and cons of this question. Sometimes foreclosure can make less of a difference to your credit score than a bankruptcy, however, credit scores shouldn’t be your primary concern and a downturn on your credit score isn’t always the case in either scenario.
Your decision between bankruptcy or foreclosure should depend on your goals in the future. Are you looking to purchase a home a few years after a foreclosure? Keep in mind that your credit report will list that your house was foreclosed on for 7 years after foreclosing and that fact might matter more to a mortgage loan than a potentially lower credit score.
When thinking “is bankruptcy better than foreclosure?”, at the end of the day you need to realize that while sometimes foreclosure might not affect your credit score as much, it still goes on your credit report, leaves you without your home and fails to settle all the other debt you might carry. Meanwhile bankruptcy affects all your debt not just the mortgage loan debt. Bankruptcy tends to be more global financial relief.
In deciding is bankruptcy better than foreclosure for your situation, weigh the pros and cons of different housing arrangements, the severity of your other debts and take the time to sit down with an experienced attorney who can answer your questions and counsel you in legal matters surrounding a bankruptcy.
As you can see, is bankruptcy better than foreclosure has several factors to weigh and evaluate. In serious financial matters such as this, it’s always within your best interest to speak with an attorney who is experienced and well versed in an area of expertise such as bankruptcy or foreclosure.