See How A Divorce Can Change Your Credit Score
September 23, 2009 by Kevin Lee Lynch
Filed under Debt Collection
The figures on how many marriages end in divorce are shocking. And as emotionally painful as a divorce can be all too often it also has an highly harmful effect on your money as well.
Numerous individuals who have had great credit for years and years end up with tribulations on their credit subsequent to a divorce. Divorce is one of the main things that cause difficult credit for many persons.
As an party who is married you are often treated as equally responsible 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. In spite of this even though this is a ruling from a court of law it is generally ignored and unseen by creditors, especially 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 make an attempt 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 responsible but doesn’t pay, you will be held responsible.
Because you have separate households and you are no longer getting mail or notices at the same address, you may not even be alert that there is a problem 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 dilemma sufficient but if the ex-spouse decides to stop paying completely and declare bankruptcy the remaining spouse can be held legally responsible for the entire total of the debt including late charges in spite of the court order. As the only remaining opportunity available for collection the creditor will go for the other individual.
It is regrettable but at this time the credit system is especially unjust to the parties of a divorce. Often the only way to completely finalize 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 spotless 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, including a bankruptcy can be disputed if you will that it is inaccurate, misleading, incomplete, untimely, ambiguous, biased, unverifiable or unclear.
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