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Judgement or Chapter 7... Which is worse?


side-show-bob
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I have hopes of buying a home someday. I recently lost a case in court which I have no intent of paying because the debt was a result of fraud. I lost the case based not on the evidence, but because I did not respond to one of the many Motions filed by the Plaintiff in time. I also have a few legit credit card debts.

I am thinking of filing Chapter 7 because right now I have no non-exempt property, and I do not want to hide my savings for the next 7 years for fear of the Plaintiff raiding my bank account one day.

My question is, which is worse for your credit - $9000 Judgement, or Chapter 7?

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I have hopes of buying a home someday. My question is, which is worse for your credit - $9000 Judgement, or Chapter 7?

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It depends on your current credit scores. You can buy a home with 100% financing with single digit interest rates one day after a chapter 7 is discharged if your FICO is higher than 599. If your credit is really good right now, your FICO may be greater than 599 after a chapter 7 if the only ding you have on your credit is a bankruptcy. Your Debt to Income would be optimum too because your unsecured debt would be dismissed.

It's not always as bad as some would lead you to believe. Everybody's circumstances are different.

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Thx for the responses. Im really thinking about filing for ch7 because I just learned that Judements in Texas are enforceable for up to 10 years and are renewable. I dont want to live out the rest of my days not being able to put money in a bank account or worrying about a deputy coming to my home to take inventory of my goods.

I will try to clean up my credit as best I can before I file for ch7 and hopefully I can start building up my credit in the next couple of years. Any other advise would be helpful. Thx again...

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I hope you have one hell of a lot more debt than $9K.

I have close to 10k in debt total. My problem is that I have read about judgements following people for many years until one day it jumps out the bushes and finally you pay with interest. Im fearful of putting money in my bank account to pay bills because I do not know when it might be seized. The day to day stress is more than I thought it would be.

If I file Ch7, my day to day life would be simpler, or so I think... Please correct me if I am mistaken about this because I have no experience with these matters at all. Also from what I have read, it is not easy to get a home loan with a Judgement on file either. I will do more reading on both issues but please Bingo if you have warnings about ch7 im all ears.

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