Legal Question in Credit and Debt Law in Virginia

credit after bankruptcy

My husband declared bankruptcy 1.5 years ago. I would like to buy a home now but he thinks that his bankruptcy would push our interest rate to 10% from the 8% it is now. Is this true? We pay our debts religiously - when could we possibly start looking for a home without getting hit by a higher interest rate? He thinks that if we wait until 2 years have passed, we wouldn't have this problem and could get a low interest rate. Thank you.


Asked on 6/17/00, 4:15 pm

1 Answer from Attorneys
Daniel Hawes Hawes & Associates

Re: credit after bankruptcy

You can buy a house and apply for the mortgage in your name only. You can supply income information from your husband as available to you to repay the mortgage. You can still get the deed made out to you and your husband as a married couple. Also, it depends on what kind of bankruptcy it was; if chapter 13, it's probably still going on, and your husband would have to have permission to take on new debt. If chapter 7, some people will be happy to lend to you because they know your husband can't do another bankruptcy for a while. Talk to a loan officer at your bank and see what kind of creative accounting they can do to get you the loan. If they're not willing to be creative, talk to someone else - there's someone out there who wants to loan you money at a reasonable rate. It's just a bit of work finding them.

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Answered on 8/16/00, 7:04 am


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