Bankruptcy and marriage

[gemini]

I've been a little confused on this subject and everyone gives me a different answer. Here's what I need to know:

I have absolute horrible credit. I'm at the point where bankruptcy is my only option. But the thing is, I'm getting married in June of 2009. My finance's credit is pretty good. I've been told I must file bankruptcy before we get married or it will hurt his credit also. We have no joint accounts or anything like that. Our credit and debt is all completely separate. It takes money to file bankruptcy and I'm not sure if I will be able to do it before we get married. Will it affect his credit if I do it AFTER we get married? Even if we own nothing jointly?

[chane]

Originally Posted by gemini

I've been a little confused on this subject and everyone gives me a different answer. Here's what I need to know:

I have absolute horrible credit. I'm at the point where bankruptcy is my only option. But the thing is, I'm getting married in June of 2009. My finance's credit is pretty good. I've been told I must file bankruptcy before we get married or it will hurt his credit also. We have no joint accounts or anything like that. Our credit and debt is all completely separate. It takes money to file bankruptcy and I'm not sure if I will be able to do it before we get married. Will it affect his credit if I do it AFTER we get married? Even if we own nothing jointly?

No, it won't. Nothing you do can hurt his credit reports or credit scores unless you have joint accounts.

However, if you try to buy house together it is highly unlikely that a lender would let you put your name on the loan.

[shayne54]

Originally Posted by gemini

I've been a little confused on this subject and everyone gives me a different answer. Here's what I need to know:

I have absolute horrible credit. I'm at the point where bankruptcy is my only option. But the thing is, I'm getting married in June of 2009. My finance's credit is pretty good. I've been told I must file bankruptcy before we get married or it will hurt his credit also. We have no joint accounts or anything like that. Our credit and debt is all completely separate. It takes money to file bankruptcy and I'm not sure if I will be able to do it before we get married. Will it affect his credit if I do it AFTER we get married? Even if we own nothing jointly?

Just to add to what Chane had mentioned...

In my "previous life" I was a mortgage broker for 5 years. I even owned my own company until this meltdown thingy fried it, anyways, he is correct in saying that your credit in no way can harm your fiancé's credit scores. You each have separate files that will merge in no way. Even if you were to get a joint account (car loan, etc.) the payment history of that account is the only thing that will affect his credit.

As far as the new mortgage goes, if you truly must file bankruptcy you are at least 2 years from the filing date before you will be able to get a loan with your name on it. If he can qualify based off of his income alone, then that will be the way to go. Another option, especially in this market, would be to lease to own or rent to own for two years while you work on your credit. Obviously, it would be best if you could get a mortgage today with all the incentives (low rates, $7500 tax credit, and houses are at very low prices), but depending on what part of the country you live in, your finance's income might not be high enough to qualify for anything suitable.