credit score afterwards

[ANGELN]

I've been looking into filing chapter 7 for a couple weeks now and today my husband says he would rather file 13 so it won't hurt our credit as much. For one, that would still leave us with not enough money per month and two, isn't your credit hurt just as much?

[chucko]

Chapter 13 is almost as bad as chapter 7 when it comes to credit. You get crappy credit both ways, but one way makes you pay something back, and the other doesn't.

I think the consensus around here is if you can get by with a chapter 7, then try to go ahead and do so unless you have a moral dilemma about not paying creditors back.

The nice thing about chapter 7 is it's over in a relatively short period of time, and then you have the challenge of getting stuff taken off your credit report. You'd be amazed at what you can get taken off once the dust settles.

[Minnymouth]

It all shows as "bankruptcy" on your credit report and is reported as such..... the effect is the same...........

If you are in a position to do a Chapter 7 without loosing your home etc.... go for the 7 and wipe the slate clean.....
If a Chapter 13 will save your home, etc... the go with 13 and some of what you owe your creditors will be repaid in a payment plan approved by the Court.

Keep us posted

[ANGELN]

Thanks guys, that's just what I thought. Our house and vehicles would be exempt so I guess that's what we'll do.

[LostOne0069]

Not to mention the fact that credit score is kind of moot in a ch 13 anyway as any debt you want to go into has to be approved by the trustee... which is NOT likely to happen.

With a 7 you really get that "fresh start" everything is wiped out and you get a lousy credit rating... but you can start rebuilding it NOW, not 3 or 5 years from now.

[concerned]

Our attorney tried to convince us that a Ch. 13 was the way to go. He used the fact that it would hurt our credit as a valid argument. He failed to mention that we would have to pay creditors and him a whole lot more if we filed Ch. 13.

We filed 7 after doing a lot of research and reading the posts & comments on this forum. Our attorney would be laughing all the way to the bank if we had stuck with a 13.