Marriage Laws And Bankrupcy

I`m not sure in which state you`re located, I live in Wisconsin, and in Wisconsin, both husband and wife are required to provide financial information even though only one person`s name will be on the house. The house belongs to both regardless of only one person purchasing it, just because we`re married. When my husband and I purchased our home, the house was put in my name only because he didn`t have his social security number yet. They still pulled his credit report (you can still have a credit report even without a social0, with an ITIN# issued by the IRS. Anyways, once you say you`re married they pull both person`s credit information. You might want to contact a lender and ask them. Good luck.

Like the previous poster said, it really depends on which state you live in. Some have a community property law that says that when you get married you take on everything of your spouse`s, property, debts, etc. If you live in one of these states, then chances are they will look at your wife`s record too (but if your credit is really good you may be okay, depends on the bank). However, if your state doesn`t have that, then you might get away with having it all in your name only. Hope that helps.

Regardless of state law, can`t just the husband apply for the loan and do it all under his name without involvemnt from the wife??

I don`t think so, because since you`re married, bills become both person`s. That`s the way it`s in my state and others. I know this because when I went thru a divorce, even though only my name was on the house, he was still entitled to a part of it, basically I had to buy his part out, everything basically is split 50/50 in court, unless you really fight for it. Just letting you know that even though both names aren`t on that house title, it belongs to both, at least in Wisconsin! It`s not even just on homes either, I had to pay for his bills because they were incurred when we were married, he could have fought me for my car, profit sharing plans, 401k plans. Basically I`m trying to tell you to check with a lawyer that specializes in interpreting mortgage paperwork before you purchase the home. I know that mortgage companies want to know how much both make in order to qualify for a larger loan.

It would probably be wise to consult with an attorney. You`ll get the correct answer to your question that way, and besides you`ll want to consult a professional anyway before you make the decision to file bankrupcy.

If you`re not married yet, I would pursue the possibility of him getting a home on his own while he is still single. Then your credit won`t be an issue. You`d both live there afterward, but he would have already gotten the home in his name only.

I know that Alabama is a community property state, but it does NOT require that both husband and wife be party to the loan. Both names are listed on the deed, as both of you OWN the property, however the financing can be in the name of only one spouse. Certain lenders require both parties but it is not a state law.

I know that BK is sometimes the only option, but from the lender`s side of the desk, a BK is BK no matter how old it is. It can stay on the credit report for up to 10 years and the majority of lenders run from BKs. Don`t trust that the attorney will give you the honest truth. I had people sitting at my desk on a daily basis telling me that thier atty told them that once discharged, they could obtain credit. That is simply not true. What credit you will be able to get will be at a HUGE price.

I wish you the best of luck and I am sorry to hear that you are faced with this difficult decision.