Find Out How A Divorce Can Affect Your Credit Score

By Janet P Phillips

Far too many marriages end in divorce these days. Sadly the breakup of a marriage is not only an emotional struggle but it all too often has a immensely negative result on your money also.

Scores of people who have had good credit for years and years end up with problems on their credit subsequent to a divorce. Divorce is one of the main things that cause problem credit for lots of folks.

As an party who is married you are often treated as equally 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. Nonetheless even though this is a ruling from a court of law it is frequently disregarded and unseen by creditors, especially if the loan goes delinquent.

You need to know that 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 try to collect from both parties and they can also convey 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.

Another problem is that since the household has split and you are now living elsewhere, you will not get any notices so it is possible that you will not even be alert that there is a trouble with these until they are seriously delinquent and they are already showing on your credit report.

If the liable party decides to stop paying on the loan totally and file bankruptcy the other spouse can be held legally responsible for the full balance due counting late charges. As for the creditor, the court order is irrelevant. The other spouse is their only left over alternative to collect on the loan and they will go after that person.

Sadly at this time the credit system is unjust to the victims of divorce. At times a bankruptcy is the only way to finally settle a divorce and that is inopportune for the ex-spouse that wants to be conscientious and continue a good credit score.

Falling in to credit problems because of a divorse is 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 thought to be inaccurate, misleading, incomplete, untimely, ambiguous, biased, unverifiable or unclear. - 31382

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