Divorce And The Outcome On Your Credit Score
1:11 AM
Considerably too numerous marriages end in divorce these days. Sorry to say the division of a marriage is not only an emotional struggle but it all too often has a hugely destructive outcome on your finances also.
A lot of people who have had wonderful 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 persons.
Wedded persons are often treated as equally liable for repaying loans like mortgages, car payments and credit cards. During a divorce one person is usually assigned responsibility for the money owing. However even though this is a ruling from the court is it often overlooked and ignored by creditors, especially when 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 state 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.
One more challenge that time after time comes up is that since the household has split and one person is living at other quarters, only the accountable party will receive notice of late payments. Therefore the other spouse may not even recognize there is a problem until the loan is badly delinquent and it is already showing negative on their credit report.
While having your credit report being affected may seem dreadful enough if the other partner decides to declare bankruptcy, you could be held accountable for the entire amount of the obligation even though the courts assigned it to your ex spouse. You may be targeted by the creditor as the solitary alternative existing for them to collect the money owing.
It is deplorable but at this time the credit system is very unjust to the parties of a divorce. Often the only way to absolutely finalize a divorce is to declare bankruptcy. This is very regrettable if there is one party who strives to be dependable and badly needs to keep a spotless credit record.
Divorce is just one instance of why it is so essential 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.
A lot of people who have had wonderful 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 persons.
Wedded persons are often treated as equally liable for repaying loans like mortgages, car payments and credit cards. During a divorce one person is usually assigned responsibility for the money owing. However even though this is a ruling from the court is it often overlooked and ignored by creditors, especially when 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 state 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.
One more challenge that time after time comes up is that since the household has split and one person is living at other quarters, only the accountable party will receive notice of late payments. Therefore the other spouse may not even recognize there is a problem until the loan is badly delinquent and it is already showing negative on their credit report.
While having your credit report being affected may seem dreadful enough if the other partner decides to declare bankruptcy, you could be held accountable for the entire amount of the obligation even though the courts assigned it to your ex spouse. You may be targeted by the creditor as the solitary alternative existing for them to collect the money owing.
It is deplorable but at this time the credit system is very unjust to the parties of a divorce. Often the only way to absolutely finalize a divorce is to declare bankruptcy. This is very regrettable if there is one party who strives to be dependable and badly needs to keep a spotless credit record.
Divorce is just one instance of why it is so essential 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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