Log in

View Full Version : Bankruptcy vs foreclosure


mijo668
Oct 4, 2007, 05:33 AM
What is the difference? Which is worse?

ScottGem
Oct 4, 2007, 05:49 AM
They are totally different. Bankruptcy is a legal safe haven to protect you from debt. Depending on the type of bankruptcy you may need to work out a liquidation of assets to at least partially pay debt.

A foreclosure is simply the recovery of property when you default on a loan where the property was used as collateral.

Both have adverse affects on your credit.