Bankruptcy


#1

It depends. If both of you have a bankruptcy on your record, it will be more difficult of course unless it’s the same bankruptcy number. Length of time since the bankruptcy and any possibility of reestablished credit lines since the bankruptcy also make a difference. The more time away from the bankruptcy is better, as is any credit you have managed to reestablish in good standing. Not quite sure how mortgage brokers are acting post housing bubble, but it used to be that people who had a bankruptcy, yet had made efforts to reestablish credit were desired customers simply from the fact that within the next 10 years, they couldn’t file for bankruptcy again. I had a bankruptcy and within 2 years of the final date was able to buy my house.


#2

I guess I should be more specific. My girlfriend and I are planning to get married and will be looking to by a home soon after. She filed a Chapter 7 bankruptcy approximately 6 years ago due to a previous divorce, and has done everything that she can to gain good credit. I am currently reeling in debit from my own divorce and am to the point of having to file a Chapter 13 bankruptcy in order to get some of my ex’s debit as well as my own taken care of.

Will my new wife and be able to find financing for a new house if I do this?

My credit is moving from the toilet to the septic tank. I don’t want to make things any worse than they already are.

Jonathan


#3

Unless you own a business or a house, a chapter 13 is probably not in your best interests. The credit damage is practically the same, but a 13 is more of a restructuring as opposed to an elimination. If you are going to trash your credit anyhow, might as well get the debt removed. Chapter 13 costs more in attorney fees too and takes longer to completely discharge.

In addition, since this is post-divorce, I doubt you can eliminate your ex spouse’s debt…and why would you want to? She’s trying to prevent you from seeing your kids…why reward her for bad behaviour? Why give her the financial club to beat you with?

Seek the advice of an attorney who specializes in bankruptcy and who has good qualifications as a bankruptcy attorney. Look into that person’s acceditation, and whether or not they belong to societies or edit journals on bankruptcy (yep both of those are out there.) before making a decision.


#4

The best person to answer this question would probably be someone in the business of dealing with mortgages and who can run your credit and give you some first hand advice.

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#5

Chapter 13 is the only course that I can take. From what I have been told. This is due to some of my debt and my ex’s debt(that we share)not being current. And, Chapter 13 has cheaper attorney fees here than Chapter 7.

I deffinately would rather get rid of the debt than have to pay it back, but because of my situation, I have no other choice.

With everything that is going on with the kids, and the debt, I am very confused.

Jonathan


#6

I’ve gone through this myself and bankrupcy isn’t the black mark it once was.

I filed for bankrupcty in June 2005 and In January of 2008 I purchased my home. My interest rate is slightly higher than the national average. I also have a new car.

I believe you have to wait at least 2 years before you can look to purchase a home but if your girlfriend has her credit cleaned up then it should be fine.

Divorce is what got me into the hole. I simply couldn’t afford the tens of thousands I was left holding the bag on.


#7

Is it possible for two people whom have bankruptcies on their credit to get the financing to purchase a house through normal channels?

Jonathan