I petitioned the trustee to dismiss my Chapter 13 case because I could not afford to pay $1400.00 a month anymore in addition to a $1200.00 mortgage and other expenses. My primary reason for filing for Chapter 13 was to protect to house from forclosure. I sold my home and have a settlement date in two weeks. My question is since the Chapter 13 was dismissed on 8/20 what impact does this have on my credit score. Is it viewed just like it would if my case was "discharged"? Does my house being sold help my score any? Thanks!
2007-08-26 09:13:08 · 2 answers · asked by dgoldenboy67 1 in Business & Finance ➔ Credit
Your credit score was probably pretty low before you file bankruptcy. That lowered it. Getting the bankruptcy dismissed won't improve your score. Your creditors are going to be zooming in now. You may find yourself getting all sorts of summons.
If you are using the proceeds from the sale of your house to pay off your other debts, than that will help.
2007-08-26 09:26:29 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
I am not too familiar with chap 13 since I filed chapter 7. I know with my chap 7 my credit was very bad before I filed and when I just checked my scores and all that, I am at a 610 post bankruptcy. I don't think that is all that bad considering what I have been through.
Did you check into rolling your chapter 13 into a chapter 7? I know this can be done but it may be too late now. My lawyer told me about this...it is called a chapter 20. It was something I almost was going to have to do when I had higher income and then I loss a job and that allowed me to file chap 7. (job market is very bad in my area).
But if dismissing the case cancels the bankruptcy, then I think you will end up back at square one unless you are using the proceeds from the sale of your house to pay off all your debts.
If you do that, then your credit will not be any worse than it is now although having a mortgage can help boost your credit scores.
But just because your credit reports say Bankruptcy on them does not mean your credit is shot and your FICO scores are low. Even though I have opted out of credit offers, I am getting tons of them now and my FICO score is on the rise only a couple months post bankruptcy.
You really should see a bankruptcy lawyer or go back to your first one to see what else can be done to help you. I would have tried to roll the chapter 13 over to a chapter 7....it can be done...even after only paying for a few months on a chap 13 repayment plan.
2007-08-26 09:58:40 · answer #2 · answered by Kris 3 · 0⤊ 0⤋
Unfortunately, the bankruptcy will still be listed on your credit report, but it will show "dismissed". That will continue to hurt your score a bit.
The debts that were "included in bankrutpcy" will revert back to their previous state (if the creditor reports it)....and that will also kill your score.
Having your BK dismissed can be very destructive. You never want to do that.
2007-08-26 09:42:19 · answer #3 · answered by Anonymous · 1⤊ 0⤋