Bankruptcy is an option if a person plans to liquify all of there debts (chapter 7) or wish to maintain certain assets, such as a home, and enter into a repayment plan with there creditors to pay off their undischarged debts over a period of up to five years. Concerning the home, I would advise you to consider a Chapter 13 if you planned on keeping the home or were still living in the home. However, since the home was already foreclosed on and sold off, you may want to consider a Chapter 7 which would discharge the $30,621 debt (subject to the Bankruptcy Trustee authorization) completely. If you are in the process of rebuilding your credit, be mindful that a bankruptcy will have a negative impact on your credit score, and can remain on your credit report for up to 10 years.
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