We are giving up our home in our bankruptcy, how will this show on our credit?
Sadly this will show up on your credit report under what is called public records.
The current time frame they stay on your report is 7 years. However , that is in the process of being moved to 10 years and there is some discussion about it increasing to 13 in years to come.
You will also get a foreclosure on your report and that will also report under public record for 7 years. This 7 year period here starts when you home is resold from the lender to the new owner whether this happens at auction or 1 year later. That purchase starts your clock on this one.
You should be in touch with an attorney to assist you with this process as many people make errors when filing and miss critical items due to the overwhelming amount of stress and pressure you are enduring in this time period.
As bad as it is now, you want to make sure you are doing the right thing for yourselves and that you help yourself get off to a new start after this is completed.
You will want to re-establish your credit as soon as possible after as you will need 4 trade lines for 4 years as a standard time frame for many types of financing, including being able to qualify for a new home if this is not caused by a medical situation or some other extreme circumstance.
That depends upon in which way you give it up. If there is equity in the home, the trustee will want to sell it and use the money to pay creditors, and themself. This is not the likely scenario, but if it does happen, this will probably be a good thing for your credit.
If you are like most, where your house is way under water, then the trustee will abandon the house as having no value for the estate. This will be coupled with a motion for relief from stay, so that the note holder can foreclose. This will have a major negative impact on your credit, as of course, your bankruptcy already did. The good news is that your credit score has no where to go but up, however you should not go back down the road that caused your downfall; credit. If you can't afford to pay cash, consider not making the purchase. Credit will be much harder to get in the future in any case.