Find Out How A Divorce Can Distress Your Credit Report

The information 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 severely harmful outcome on your finances also.

Oftentimes there are individuals who have been dependable and reliable with their credit for years who end up with major problems following a divorce. Divorce is one of the main causes of problematical credit for many individuals.

As an person who is married you are often treated as likewise liable 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 decree from a court of law it is generally overlooked and ignored by creditors, especially if the loan goes delinquent.

A credit report will not reflect a decree of divorce. If a payment is missed by the responsible spouse the creditors can and will endeavor 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 accountable.

An additional challenge that over and over again comes up is that since the family has split and one party is living at other housing, only the liable party will receive notification of behind payments. Therefore the other spouse may not even realize there is a quandary until the loan is badly delinquent and it is already showing negative on their credit report.

If the responsible person decides to stop paying on the loan altogether and file bankruptcy the other spouse can be held liable for the total balance due together with late charges. As for the creditor, the court order is immaterial. The other spouse is their only left over opportunity to collect on the loan and they will go after that person.

It is deplorable but at this time the credit system is extremely inequitable 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 needs to keep a spotless credit record.

However this state of affairs is just one instance of why it is notable that we have the right and we can repair our credit. We can dispute any item on our credit reports, including bankruptcies that we feel may be inaccurate, untimely, incomplete, ambiguous, misleading, untimely, unverifiable, prejudiced or unclear.

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