Discharge Vs. Dismissal

A discharge means that you have met the terms as agreed, a dismissal may indicate that you have not complied and leave you open to further collections, judgments and garnishments. That being the case, your credit will most likely continue to deteriorate with a dismissal versus a discharge.

A dismissed or discharged Chapter 7 stays on your credit report for 10 years and a dismissed or discharged Chapter 13 will stay for 7. As far as your credit, you can qualify for an FHA/VA loan after 24 months has passed. The key is to BUILD your credit in the meantime. Work on repairing your credit by pulling a copy of your credit report, reviewing it, identifying the negative items, dispute any account you believe to be inaccurate, and DO NOT pay anything else late. Open SECURED credit cards and pay everything on time. Pay off the accounts that are collections and cannot be removed through the dispute process. With a CAREFUL and COMMITTED strategy, you could possible be in a position to own a home in 24 months and have decent credit. Hope this helps.