refinance home before or after BK

[Sheenasmom2]

Hi. I just talked to my lawyer today and my divorce should be finalized in 2 weeks. He suggested I get my house refinanced after the divorce if I can but he isn't sure I can with the amount of credit card debt?

Will a mortgage company refinance a home with a recent bK on file? I have never done this before but the lawyer says to wait until the divorce is final then file the BK. Only he isn't sure if I can get the house refinanced with a recent BK on file but I am pretty sure with the amount of credit card debt and bad credit I have due to the situation that I won't be able to refinance.

Any advice? Thanks

[HHM]

First off, why do you need to refinance? If you don't absolutely have to, then don't.

But if you must, you are probably in a catch 22. If you have a lot of outstanding debt and your credit is shot, it will be hard to get financed, and if you file BK, it will be next to impossible to get financed.

From what I have been hearing here and elsewhere, most mortgage companies won't touch you until 1 year after BK. (but there are exceptions to every rule).

[Sheenasmom2]

Thanks so much for the help. I kind of figured as much. Both mine and my spouses name is on the loans so I would have to refinance to get him name off. It is in the divorce papers that if I can't get if refinanced right away, I will have to continue to try. Well I reallllly need to do a BK to try and start fresh. He is in far more debt than myself since we split. He has creditors calling my house looking for him now. Thanks again.

[HHM]

Thanks so much for the help. I kind of figured as much. Both mine and my spouses name is on the loans so I would have to refinance to get him name off. It is in the divorce papers that if I can't get if refinanced right away, I will have to continue to try. Well I reallllly need to do a BK to try and start fresh. He is in far more debt than myself since we split. He has creditors calling my house looking for him now. Thanks again.

I figured as much.

I would suggest trying to refinance BEFORE the bk and see what you get. Also, when you do file BK, list all accounts, including the ones your "ex" is liable for.

[Sheenasmom2]

Thanks again for all the help. I will see what I can do.