4 ms·
This is only true in states with non-recourse loans. Many states have full recourse home loans that would require the homeowners declare bankruptcy to "walk awa
by RayVR 5y ago
This is only true in states with non-recourse loans. Many states have full recourse home loans that would require the homeowners declare bankruptcy to "walk away"
- TedDoesntTalk 5y agoYeah, and I don’t think bankruptcy disappears from your credit report after 7 years like other items. Does it?
- yurishimo 5y agoBankruptcy does eventually disappear I think, or if it doesn't there are legal requirements not to hold it against you after X years without a problem on your end. It's been a while since I've looked into it.
- ncphil 5y agoThe irony, of course, is that the US Bankruptcy Code provides you can't declare bankruptcy again until 7 years have passed. So creditors theoretically have less risk during the period they generally refuse credit to the newly bankrupt. Of course none of that applies to business bankruptcy, where the old company is often dissolved but you're often looking to the same former principal(s) for personal guarantees of the new company's obligations.
- sokoloff 5y agoThere are a number of lenders who are willing to extend credit to those with a discharged bankruptcy (on terms far worse than someone with an 810 credit score, of course).
- addaon 5y ago7 years (Chapter 13) or 10 years (Chapter 7).[1] [1] https://www.lexingtonlaw.com/education/how-to-remove-bankruptcy https://www.lexingtonlaw.com/education/how-to-remove-bankrup...