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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I filed and discharged bankruptcy (Ch. 7) before I met my now

This answer was rated:

I filed and discharged bankruptcy (Ch. 7) before I met my now wife and have had to take steps to relinquish my house three years after the bankruptcy discharge. My credit rating has greatly improved since the discharge, but was wondering if relinquishing the home will impact my credit any further? Will it lengthen the time the bankruptcy shows up on the credit report?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

Do you mean foreclosed?

WALLSTREETESQ :

If the home was foreclosed, or you walked away from it,

WALLSTREETESQ :

then your credit would be hit significantly, 100+ points on average.

WALLSTREETESQ :

The chapter 7 will remain on your credit regardless of what was done to the home.

Customer:

It has not been foreclosed on yet. I am hoping the bank will accept a deed in lieu of foreclosure. I know the home loan was discharged/closed in bankruptcy, so didn't know if the actual step of walking away from the house would impair my credit further.

WALLSTREETESQ :

A chapter 7 will remain for 10 years regardless.

WALLSTREETESQ :

If the loan was discharged in bankruptcy, and you get a deed in lieu, their will be no credit lowering as the loan was already discharged.

WALLSTREETESQ :

If the home is foreclosed, the foreclosure will hurt your credit.

Customer:

Thank you for your input. It was helpful.


 

Customer:
WALLSTREETESQ :

In a case where the loan was already discharged, I do not see any reason for the bank not to accept the deed in lieu.


 

WALLSTREETESQ :

Good luck, and if you have any further questions pelase do not hesitate to ask.

WALLSTREETESQ :

If satisfied with our service please provide us with positive feedback so we can receive credit.

Customer:
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you