See How A Divorce Can Influence Your Credit Score

The number of marriages that end up in divorce is a disappointing statistic. Far too many individuals suffer these painful breakups. As one goes through a split-up not only is there the emotional sting but all too often it unhelpfully affects their money also.

In many instances there are individuals who have been trustworthy and consistent with their credit for years who end up with major troubles following a divorce. Divorce is one of the key causes of difficult credit for many folks.

As an individual who is married you are often treated as likewise 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. Nonetheless even though this is a declaration from a court of law it is as a rule disregarded and overlooked by creditors, especially if the loan goes delinquent.

This might be a surprise to you but a divorce decree does not show up on a credit report? If the ex-spouse who is responsible for the balance due misses a payment the creditors can and will attempt to collect from the other party. Both parties will also have the failure reported on their credit reports. If your ex-spouse is supposed to pay but doesn’t, you will be held legally responsible.

An added challenge that constantly comes up is that since the household has split and one individual is living at other accommodation, only the responsible party will receive notification of behind payments. Therefore the other spouse may not even recognize there is a difficulty until the loan is dangerously delinquent and it is already showing negative on their credit report.

If the accountable person decides to stop paying on the loan completely and file bankruptcy the other spouse can be held liable for the full debt together with late charges. As for the creditor, the court order is immaterial. The other spouse is their only remaining opportunity to collect on the loan and they will go after that person.

It is lamentable but at this time the credit system is exceptionally unjust to the parties of a divorce. Often the only way to fully conclude a divorce is to declare bankruptcy. This is very unfortunate if there is one party who strives to be responsible and badly wants to keep a clean credit record.

Going through a divorce is just one illustration of why it is so important 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.

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