The Effect Of A Divorce On Your Credit
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The figures on how many marriages end in divorce are shocking. And as psychologically upsetting as a divorce can be all too often it also has an acutely destructive consequence on your finances besides.
Oftentimes there are persons who have been accountable and dependable with their credit for years who end up with major problems following a divorce. Divorce is one of the main causes of knotty credit for many persons.
As an individual who is married you are often treated as likewise accountable 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 judgment from a court of law it is regularly overlooked and unseen by creditors, especially if the loan goes delinquent.
A decree of divorce is not noted on a credit report. If one of the ex spouses is responsible for the debt and a payment is missed the creditors can go to collect from both parties and they can also report the delinquencies on both parties credit report. If your ex-spouse is responsible for the payments and he or she starts to slack off your credit report can also be affected.
Since you have separate households and you are no longer getting mail or notices at the same address, you may not even be conscious that there is a problem with the old debts until it is too late and it is already reported on your credit.
While having your credit report being affected may seem bad enough if the other partner decides to declare bankruptcy, you could be held liable for the full total of the money owing even though the courts assigned it to your ex spouse. You may be targeted by the creditor as the solitary opportunity accessible for them to collect the debt.
It is a upsetting fact but accurate that sometimes the only way to complete a divorce is to declare bankruptcy. The credit system is very inequitable to parties of a divorce. If an ex-spouse badly wants to keep a untainted record it may not even be possible.
Divorce and the credit problems it can bring are just one of the many reasons why it is so vital that we are able to repair our credit. Any item that shows up on a credit report including a bankruptcy can be disputed if it is believed to be inaccurate, misleading, incomplete, untimely, ambiguous, biased, unverifiable or unclear.
Article Source: Articlelogy.com
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