Skip to main content

Would a consent foreclosure be better than a bankruptcy ?

Naperville, IL |

I am not sure how the consent foreclosure will impact my credit. All of my bills has been paid on time except for my mortgage. Will the consent foreclosure help my score improve if I keep the credit already established and continue making on time payments or, Will bankruptcy be the better option?

+ Read More

Attorney answers 3


No. First, all your creditors will have to be included in the bankruptcy, and even if you reaffirm all the others (a terrible idea), they will still close your accounts. Plus a foreclosure has a much larger impact on your credit score than you realize - usually worse than a bankruptcy.

We can be reached at 507.334.0155. Our web address is: www. Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code.


You need to seek the help of an IL attorney to help you with this matter. There are too many variables to even properly answer this question. Are you employed? Do you want to keep the house and clear up the arrears through a chapter 13 plan? Has the bank already filed a foreclosure complaint? You may want to see if the bank will accept a deed in lieu of foreclosure. That way they won't be able to come after you for the deficiency on the loan. It's really not as cut and dry as what will have less of an impact on my credit report. More importantly, it's what would you like to have happen as your credit is already probably not looking that great. Unfortunately, either way, your credit is going to take a hit. You can minimize how bad of a hit by hiring a competent attorney. Check out for practitioners in your area.

***I have been designated as a federal debt relief agency by an act of Congress. Among other services, I help people obtain relief from their debts through the Bankruptcy Code.*** Any information provided on this website, is for informational purposes only. Please seek advice of a qualified lawyer in your area for information pertaining to your particular case.


I’m not sure if this answer is on target, but I would place a possible deficiency judgment being entered against you as a priority, not your credit score. If you have large debts, other than the foreclosure, and you qualify for a chapter 7 bk, I would say file a bk. In alterative, if you only have the foreclosure debt to worry about, and the bank will accept a consent foreclosure (which is voluntary) than I would go for the consent foreclosure. Good Luck.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer