What is the difference in bankruptcy and foreclosure?

Answer by  prissymissy (1895)

Foreclosure is when you cannot pay your mortgage and the bank takes over the possession of your home. Bankruptcy is when you cannot pay your debts and you go through a court process to declare legally that you cannot pay. Both ruin your credit for years.

Answer by  presiousesq (6)

Foreclosure is when a creditor takes possession of borrower's property that was securing a loan on which borrower has defaulted. Bankruptcy is used by debtors to seek protection from creditors. In a bankruptcy a trustee take possession of the debtor's assets on behalf of the creditors.

Answer by  HawaiianGirl (6906)

bankkruptcy deals with all of a persons debts and finances. When you file for bankruptsy, you are not at all able to get out of debt on your own. A foreclosure is filed when you can't pay the mortgage on your house.

Answer by  tamarawilhite (17883)

A foreclosure is the reclaiming of a house or property from an individual or company. A foreclosure is for one single property. A bankruptcy involves all debts, including property. A bankruptcy can include home foreclosure, but a foreclosure doesn't resolve all other debts.

Answer by  Kurt (4579)

Foreclosure is when the lender takes possession of the property because of non payment on the loan. Bankruptcy is when the borrower files for legal relief against their debt.