QUESTION
Will filing medical bankruptcy make it hard to purchase a home or can my husband purchase one in just his name?
Asked on Jun 06th, 2016 on Bankruptcy - Colorado
More details to this question:
I have a lot of medical bills. It's killing us. Many of which have been turned in for collection. We are relocating. We will be selling out home which has approximately $65000 in equity. We would like to purchase a home, pay cash and get a small mortgage. If only I file, in my things in my name only, will my husband be able to purchase a home in his name only? Do they look at spouse’s credit also? Should I wait to file when we move?
5 ANSWERS
You are asking multiple questions here. Whether your husband can buy a home in his name only depends on the lender you choose, and their criteria. If your current home is in both your names, the sale of the home will have to be reported in your bankruptcy case, and you will have to account for the proceeds. It is certainly legal for one spouse in a marriage to file bankruptcy by herself, but whether it is advisable depends on a number of other factors which should be considered in a personal consultation with an experienced bankruptcy lawyer.
Answered on Jul 11th, 2016 at 5:36 PM
You need to understand that a bankruptcy is a bankruptcy. You cannot file bankruptcy just on medical debt and exclude other debt. And even though the medical debt is from care provided to just one person, spouses are 100% responsible for the medical debt of the other. You express many misconceptions about how bankruptcy and credit works and there is not enough space available for me to address every issue you have raised.
Answered on Jul 11th, 2016 at 12:17 PM
I would meet with an attorney face to face to ask you questions. You may have to pay a small fee for the visit, but you have too much to lose if you don't do this properly.
Answered on Jul 11th, 2016 at 12:16 PM
2 Awards
If you have a lot of medical bills in your name, it is possible that only you could file bankruptcy and receive a discharge of indebtedness, with your husband being able to qualify for a mortgage in the future. However, I strongly recommend that you discuss filing bankruptcy with an attorney as there are ramifications to only one spouse filing. Also, the timing of the sale of your house is very important.
Answered on Jul 11th, 2016 at 12:16 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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If you file in your name only, your credit will not be a factor in a home purchase by your husband only.
Answered on Jul 11th, 2016 at 12:16 PM