Find Out How A Divorce Can Upset Your Credit
The simple truth is, the amount of marriages that end up in divorce is a dispiriting statistic. Far too many persons go through these painful breakups. As one goes through a split not only is there the emotional sting but all too often it negatively affects their finances also.
Far too frequently these days, a individual who has been a dependable and conscientious credit risk for many years ends up with vast problems on their credit following a divorce. One of the main causes of problem credit for many people is divorce.
As an person who is married you are often treated as likewise liable for repayment on loans like car payments, credit cards and home mortgages. As you divorce the court assigns responsibility for the debt to just one party. But even though this is a decree from a court of law it is typically unobserved and unnoticed by creditors, especially if the loan goes delinquent.
You must know that a credit report will not reflect a decree of divorce. If a payment is missed by the responsible spouse the creditors can and will try to collect from the other party. Not only that but they will recount the delinquency on both spouses credit reports. If your ex-spouse is accountable but doesn’t pay, you will be held responsible.
Since you have separate households and you are no longer getting mail or notices at the same address, you may not even be aware that there is a problem 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 totally and file bankruptcy the other spouse can be held legally responsible for the entire obligation counting late charges. As for the creditor, the court order is immaterial. The other spouse is their only remaining alternative to collect on the loan and they will go after that person.
It is disappointing but at this time the credit system is exceedingly inequitable to the parties of a divorce. Often the only way to finally finalize a divorce is to declare bankruptcy. This is very disastrous if there is one party who strives to be reliable and badly wants to keep a clean credit record.
Going through a divorce is just one illustration of why it is so vital that we have the right to repair our credit. Any item on a credit report, counting a bankruptcy can be disputed if you will that it is inaccurate, misleading, incomplete, untimely, ambiguous, biased, unverifiable or unclear.
There’s a lot of variables that could contribute to raise your credit score quickly although to fix my credit may also help bring it back.
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