Learn How A Divorce Can Upset Your Credit Report
Considerably too many marriages end in divorce these days. Sadly the splitting up of a marriage is not only an emotional battle but it all too often has a hugely negative outcome on your finances also.
Frequently there are folks who have been responsible and trustworthy with their credit for years who end up with major tribulations following a divorce. Divorce is one of the foremost causes of problematic credit for many persons.
Did you know that when you are married you and your spouse are often equally treated as just as responsible for repaying loans like mortgages, car payments and credit cards? When the divorce happens the courts usually assign responsibility to one or the other party. However, even though this is by order of the court many times the creditors will pay no heed to it, more than ever if the loan goes delinquent.
Just remember a credit report will not reflect a decree of divorce. If a payment is missed by the responsible partner the creditors can and will go to collect from the other party. Not only that but they will convey the delinquency on both spouses credit reports. If your ex-spouse is accountable but doesn’t pay, you will be held responsible.
Because you have split households and you are no longer in receipt of 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.
Now having your credit report affected seems to be quandary enough but if the ex-spouse decides to stop paying all in all and declare bankruptcy the remaining spouse can be held legally responsible for the full amount of the money owing counting late charges even with the court order. As the only remaining option accessible for collection the creditor will pursue the other person.
It is a pity but at this time the credit system is especially unjust to the parties of a divorce. Often the only way to entirely tie up a divorce is to declare bankruptcy. This is very unfortunate if there is one party who strives to be responsible and desperately needs to keep a untainted credit record.
Divorce is just one instance of why it is so crucial that we have the right to repair our credit. Any item on a credit report, as well as a bankruptcy can be disputed if you will that it is inaccurate, misleading, incomplete, untimely, ambiguous, biased, unverifiable or unclear.
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