The information on how many marriages end in divorce are shocking. And as emotionally heartbreaking as a divorce can be all too often it also has an terribly destructive result on your finances besides.
Oftentimes there are folks who have been conscientious and unfailing with their credit for years who end up with major problems following a divorce. Divorce is one of the major causes of problematical credit for many individuals.
Did you know that when you are married you and your spouse are often together treated as likewise in charge for repaying loans like mortgages, car payments and credit cards? When the split-up happens the courts usually assign liability to one or the other party. However, even though this is by order of the court many times the creditors will ignore it, particularly if the loan goes delinquent.
You need to know that a credit report will not reflect a decree of divorce. If a payment is missed by the accountable spouse the creditors can and will make an attempt to collect from the other party. Not only that but they will tell the delinquency on both spouses credit reports. If your ex-spouse is responsible but doesn't pay, you will be held accountable.
Because you have split households and you are no longer getting mail or notices at the same address, you may not even be attentive that there is a trouble with the old debts until it is too late and it is already reported on your credit.
If the liable party decides to stop paying on the loan altogether and file bankruptcy the other spouse can be held liable for the total obligation plus late charges. As for the creditor, the court order is irrelevant. The other spouse is their only remaining opportunity to collect on the loan and they will go after that person.
Sorry to say at this time the credit system is unjust to the victims of divorce. At times a bankruptcy is the only way to finally finalize a break up and that is inopportune for the ex-spouse that wants to be dependable and keep a good credit score.
However this situation is just one case in point of why it is significant that we have the right and we can repair our credit. We can dispute any item on our credit reports, including bankruptcies that we feel may be erroneous, untimely, incomplete, ambiguous, misleading, untimely, unverifiable, prejudiced or unclear. - 31379
Oftentimes there are folks who have been conscientious and unfailing with their credit for years who end up with major problems following a divorce. Divorce is one of the major causes of problematical credit for many individuals.
Did you know that when you are married you and your spouse are often together treated as likewise in charge for repaying loans like mortgages, car payments and credit cards? When the split-up happens the courts usually assign liability to one or the other party. However, even though this is by order of the court many times the creditors will ignore it, particularly if the loan goes delinquent.
You need to know that a credit report will not reflect a decree of divorce. If a payment is missed by the accountable spouse the creditors can and will make an attempt to collect from the other party. Not only that but they will tell the delinquency on both spouses credit reports. If your ex-spouse is responsible but doesn't pay, you will be held accountable.
Because you have split households and you are no longer getting mail or notices at the same address, you may not even be attentive that there is a trouble with the old debts until it is too late and it is already reported on your credit.
If the liable party decides to stop paying on the loan altogether and file bankruptcy the other spouse can be held liable for the total obligation plus late charges. As for the creditor, the court order is irrelevant. The other spouse is their only remaining opportunity to collect on the loan and they will go after that person.
Sorry to say at this time the credit system is unjust to the victims of divorce. At times a bankruptcy is the only way to finally finalize a break up and that is inopportune for the ex-spouse that wants to be dependable and keep a good credit score.
However this situation is just one case in point of why it is significant that we have the right and we can repair our credit. We can dispute any item on our credit reports, including bankruptcies that we feel may be erroneous, untimely, incomplete, ambiguous, misleading, untimely, unverifiable, prejudiced or unclear. - 31379
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