True, reporting of a foreclosure on your credit report can be worse than reporting of a bankruptcy.
However, a post-petition foreclosure cannot be reported to the credit bureaus because there is no personal liability after a bankruptcy. The foreclosure would be "in rem" (against the property), not "in personam" (against you personally). If the person is not liable on the account, the foreclosure cannot be reported on their credit reports.
Your mortgage account would be reflected as "discharged in bankruptcy" on your credit report, not "foreclosure."
Juan Antonio Perez Jr. Lafayette Bankruptcy Attorney
Posted over 14 years ago.
True, reporting of a foreclosure on your credit report can be worse than reporting of a bankruptcy.
However, a post-petition foreclosure cannot be reported to the credit bureaus because there is no personal liability after a bankruptcy. The foreclosure would be "in rem" (against the property), not "in personam" (against you personally). If the person is not liable on the account, the foreclosure cannot be reported on their credit reports.
Your mortgage account would be reflected as "discharged in bankruptcy" on your credit report, not "foreclosure."