It sounds good to pay cash for everything you own and not owe a dime to anyone. You would think that would be ideal, however it doesn't look good to a mortgage lender. They look to your credit report to make sure you make payments on time, so they can get an idea you will do the same for them. They like to see at least 3 forms of credit for at least 6 months payed on time. As far as the bankruptcy, if you were married at the time of banruptcy, you should have filed also. Otherwise they would come after you for all those bills he filed on. If you were not married at the time he filed, after 7 years you are forgiven the bankruptcy and all is well. Credit cards and a car loans are easy to obtain. Just make sure you make the payments on time and keep your lines of credit open. Cash unfortunately is not always king when it comes to buying a house, unless you have been stuffing your mattress and going to pay cash.