Posted on: 26th May, 2010 05:16 am
Is a bankruptcy dismissal viewed differently from a discharge by creditors and lenders? Does bankruptcy dismissal affect the creditor more than a discharge?
hi ttedwards,
yes, creditors do view bankruptcy dismissal, and bankruptcy discharge differently. after a bankruptcy dismissal the creditors and lenders will again try to collect the debt from from you. they can even foreclose your property for not paying the loan amount.
however after a bankruptcy discharge, all your debts are discharged, but creditors and lenders won't give you new credit before atleast 2-4 years. in these years you will have to improve your credit, so as to qualify for better card and loan offers.
bankruptcy dismissal can affect a creditor depending on the chapter under which the bankruptcy has been filed. if its a chapter 13 dismissal, and the debtor again applies for chapter 7 bankruptcy, the creditors won't be able to recover any money.
thanks,
sandra
yes, creditors do view bankruptcy dismissal, and bankruptcy discharge differently. after a bankruptcy dismissal the creditors and lenders will again try to collect the debt from from you. they can even foreclose your property for not paying the loan amount.
however after a bankruptcy discharge, all your debts are discharged, but creditors and lenders won't give you new credit before atleast 2-4 years. in these years you will have to improve your credit, so as to qualify for better card and loan offers.
bankruptcy dismissal can affect a creditor depending on the chapter under which the bankruptcy has been filed. if its a chapter 13 dismissal, and the debtor again applies for chapter 7 bankruptcy, the creditors won't be able to recover any money.
thanks,
sandra