Is a 13 looked at more favorably than a 7 by creditors?

[chloe0724]

I was wondering if it really makes a difference. My attorney says it does, but I'm not that sure.

[laurannm]

When we were consulting with various attorney's, one of them did mention that creditors do view a Ch 13 more favorably then a Ch 7, but like you I have no idea if that is really true or not

[liz417]

I was told the same thing by a financial advisor, but I've also been told that Bankruptcy is Bankruptcy....
Maybe someone will come along and clarify this for us.

[HHM]

In what context?

Frankly, BK is BK. For the average run of the mill creditor, BK is BK. But for larger loans, like a house, when underwritting does a subjective review of your worthiness, I have been told that a 13 is viewed slightly more favorably.

However, NO ONE should decide to file a chapter 13 because of this issue.

[Flamingo]

We were told by our attorney and by our mortgage broker when we refinanced to buy out of our Chapter 13 and also by several bank credit and financial folks that Chapter 13 is viewed more favorably than Chapter 7 mostly due to the fact that the debtor(s) is/are paying back all or a a portion of the debts owed. It is made more clear by the fact that a Chapter 7 is reported on your credit reports for 10 years as compared to 7 years for a Chapter 13. That shows some sort of favoritism right there. HHM is totally correct in his last sentence and you do not go by this in determing what Chapter you need to file. The situation is what it is and you have to do what is best for you at the moment.

[Frogge]

I was told that BK is BK, also... no chapter is better or worse, it's BK no matter what.