The data on how many marriages end in divorce are staggering. And as psychologically painful as a divorce can be all too often it also has an terribly negative consequence on your money besides.
Many people who have had excellent credit for years and years end up with problems on their credit subsequent to a divorce. Divorce is one of the key things that cause problematic credit for lots of people.
Married folks are often treated as equally responsible for repaying loans like mortgages, car payments and credit cards. Throughout a divorce one person is usually assigned liability for the money owing. Though even though this is a judgment from the court is it often overlooked and ignored by creditors, especially when the loan goes delinquent.
I'm sure you know that a decree of divorce is not noted on a credit report. If one of the ex spouses is accountable for the liability and a payment is missed the creditors can try to collect from both parties and they can also state the delinquencies on both parties credit report. If your ex-spouse is accountable for the payments and he or she starts to slack off your credit report can also be affected.
Another quandary is that since the family unit has split and you are now living in a different place, you will not receive any notices so it is possible that you will not even be conscious that there is a trouble with these until they are badly delinquent and they are already showing on your credit report.
If the accountable party decides to stop paying on the loan altogether and file bankruptcy the other spouse can be held liable for the total money owing including late charges. As for the creditor, the court order is irrelevant. The other spouse is their only left over alternative to collect on the loan and they will go after that person.
It is deplorable but at this time the credit system is exceptionally inequitable to the parties of a divorce. Often the only way to finally conclude a divorce is to declare bankruptcy. This is very disastrous if there is one party who strives to be responsible and desperately needs to keep a clean credit record.
Regardless this state of affairs is just one example of why it is important 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, biased or unclear.
Many people who have had excellent credit for years and years end up with problems on their credit subsequent to a divorce. Divorce is one of the key things that cause problematic credit for lots of people.
Married folks are often treated as equally responsible for repaying loans like mortgages, car payments and credit cards. Throughout a divorce one person is usually assigned liability for the money owing. Though even though this is a judgment from the court is it often overlooked and ignored by creditors, especially when the loan goes delinquent.
I'm sure you know that a decree of divorce is not noted on a credit report. If one of the ex spouses is accountable for the liability and a payment is missed the creditors can try to collect from both parties and they can also state the delinquencies on both parties credit report. If your ex-spouse is accountable for the payments and he or she starts to slack off your credit report can also be affected.
Another quandary is that since the family unit has split and you are now living in a different place, you will not receive any notices so it is possible that you will not even be conscious that there is a trouble with these until they are badly delinquent and they are already showing on your credit report.
If the accountable party decides to stop paying on the loan altogether and file bankruptcy the other spouse can be held liable for the total money owing including late charges. As for the creditor, the court order is irrelevant. The other spouse is their only left over alternative to collect on the loan and they will go after that person.
It is deplorable but at this time the credit system is exceptionally inequitable to the parties of a divorce. Often the only way to finally conclude a divorce is to declare bankruptcy. This is very disastrous if there is one party who strives to be responsible and desperately needs to keep a clean credit record.
Regardless this state of affairs is just one example of why it is important 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, biased or unclear.
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