Hello I am an unemployed male with some income whom is facing divorce with no children. I am considering a bankruptcy to sever things but I have a VA mortgage and cant get the house sold. When I move out I want to retain my VA benefits. I understand that if I have to file bankruptcy I will lose the VA Benefits.
What will my wife have (need) to do to keep the house If I file bankruptcy. I know that a VA loan requires the VA Benefits recipient to occupy the property. I want to force her to get her own financing and off my loan. Can I do that?
Here is what the VA has to say about bankruptcy and the VA loan:
Q: Can I get a VA loan if I have had a bankruptcy in the last few years?
A: The fact you and/or your spouse have been adjudicated bankrupt does not in itself disqualify you for a VA home loan. The following rules apply:
So it appears that if you file a chapter 7 bankruptcy and get straight to work to rebuild your credit you will become eligible for a new VA loan not that far into the future. You can follow this free guide to rebuild your credit after bankruptcy.
You can click here to find a local bankruptcy attorney to discuss your situation with so you can make an educated decision if bankruptcy is right for you.
Please post your responses and follow-up messages to me on this in the comments section below.Big Hug!