rubantin Posted July 2, 2016 Report Share Posted July 2, 2016 3 years ago we left our home/state because of a job transfer to MN. That home never sold and is now going for short sale (It is in my name only). 2 months ago I lost my job and fortunately my wife started a job which is just sufficient for our family of 5 to survive. I have revolving debt of around $20,000 in my name only and when the short sale goes through in a week it will go for $60,000 less than I owe. So, there is a potential of me owing $80,000 with no job to pay for it. Can I file a chapter 7 and not have my wife included on it or do I have to include her income and assets? Will her credit be affected? And can she purchase a home without my credit ratings, etc as a first time home buyer? BTW - I am a veteran and have a VA loan on the home. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted July 2, 2016 Report Share Posted July 2, 2016 1 hour ago, rubantin said: So, there is a potential of me owing $80,000 with no job to pay for it. What state is the house in? If it is a non-recourse state they cannot come after you for the deficiency balance. 1 hour ago, rubantin said: Can I file a chapter 7 and not have my wife included on it or do I have to include her income and assets? You can file on your own. Assets and income you need to discuss with a qualified BK attorney. 1 hour ago, rubantin said: Will her credit be affected? If she is on the mortgage and these are joint revolving accounts: YES. If you file and she doesn't they can and most likely will come after her for the balances. 1 hour ago, rubantin said: And can she purchase a home without my credit ratings, etc as a first time home buyer? Maybe. It is really up to the underwrites and often in marriages they want both spouses on the hook for the mortgage. Quote Link to comment Share on other sites More sharing options...
rubantin Posted July 3, 2016 Author Report Share Posted July 3, 2016 OK thanks! The home is in Delaware and the wells fargo short sale rep says they write it off especially because it's a VA loan. My wife has credit cards which she uses and I have my own cards. She keeps hers low balance and mine.. well... I have $16,000... Also, my job benefits extended to last month and my daughter had major surgery ~$55,000 which we will owe over 20%... So even if the short sale deficiency is written off, I still will have $27,000 of debt... My wife is not on the mortgage. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted July 3, 2016 Report Share Posted July 3, 2016 1 hour ago, rubantin said: My wife has credit cards which she uses and I have my own cards. She keeps hers low balance and mine.. well... One of the consequences of you filing BK could be that her creditors close her accounts simply because you filed. They will consider her a risk for filing and move to protect themselves. You REALLY need to discuss all your options for both of you with a qualified BK attorney ASAP. Quote Link to comment Share on other sites More sharing options...
WhoCares1000 Posted July 4, 2016 Report Share Posted July 4, 2016 Wells Fargo will write off the loan because the VA will simply pay them back their losses which then the VA can decide what to do. I have heard rumors though that the VA will chase you to the ends of the earth for the difference. I have to agree with Clydesmom, you need to talk to a BK attorney about your questions. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.