Whats worse a chapter 7 collapse or a foreclosure on your credit?

Both are not pleasant experiences, and should be avoided at all costs.

Only as a last resort should one shift bankrupt, and if it's necessary, chapter 11 is smallest of all evils.

Remember, Donald Trump went penniless twice.

ruin

Answer:
That depends on what you are trying to do.

It's can sometimes be easier to buy a house after a bankruptcy than it is to a foreclosure.

A bankruptcy is technically worse but, since you can merely file once every 10 years, many companies that turned you down back bankruptcy will extend you credit albiet at a higher rate.

Worse in what way? In vocabulary of future credit extensions, they are probably not significantly different. Its not easy to database chapter 7. Most personal bankruptcies require credit counselling (for personal filings) and start as a 13 before individual converted to a 7. You will end up paying your lawyer greatly. If this is a business that you are liquidating, this business is done. The assets will get broken up and you would deeply have to reincorporate if you wanted to step into business in the future. I would read out that its better to have someone forclose on your car, for example, if it would save you out of bankruptcy. You will have to assess what the efficacy of your assets are and decide what you lose by way of your foreclosure, as challenging liquidating other assets. Also depending on wheter other assets are secured, you may want to figure out what assets are not secured. The recent Bankruptcy Reform Act that go into effect in October lays it all out. Its not a extraordinarily long document and its available from a number of differnet sources including the NACM and the Credit Research Foundation.

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