I think any bankruptcy might be counted the same against you; i.e. pretty much kibosh your chances (but I'm only guessing).

You might post this question on the mortgage loan forum on myfico.com, too--I found that site pretty useful.

I think you have to be out of bankruptcy at least 2/3 yrs before approved for a home loan

I am not sure the bankruptcy one way or the other matters to the underwriters... (if you are trying to figure out which way you should do it before you declare bankruptcy).

It sounds like you are trying to figure out whether you should pay off a loan now, or declare bankruptcy now. You need not worry about the underwriters, but rather, the judge who will be determining how your debts will be paid. You have a long way to go before underwriter considerations...

And, you'd best discuss this with a bankruptcy lawyer.

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This post was edited by Purple-Butterfly on Sun, Aug 4, 13 at 20:01

You really need to ask your lawyer.

I am not sure why you'd include any loan that is paid in full and you no longer own the collateral for it (the car) in your present bankruptcy procedings...

AND,
Since this appears to be a question about household finances, and not a buying/selling a home question, you might want to try the "Household finances" forum (linked at the top of the page for this forum).

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This post was edited by Purple-Butterfly on Sun, Aug 4, 13 at 20:03

It was posted here because I wanted to know what would look better to the underwriter ...
My lawyer and others I consulted are NOT experts in credit and do NOT know which option would be best for my credit, this the reason for my post. My lawyer is an expert in the legal field not the credit or HOME BUYING field.

Why not ask an underwriter? You might not run into one here on the buying and selling forums.

I did put in a fairly substantial attempt to reach an underwriter but was unable to, and created this post as a last ditch effort. I am trying to figure out how to remove it, as it wasn't very helpful....

You still might try household finances, as others may have been in your situation in the past. That forum has others who have been in bankruptcy and are working their way out/up again.