Posted on: 06th Apr, 2010 09:01 am
I have a friend that is divorced, in the divorce the x-spouse took possession of certain items that they co-signed for but she got in the divorce decree. Now she is filing chapter 13. What does this do to him and how can he repair his credit report from the damage she has done?
Hi Mary,
If your friend's ex-spouse files bankruptcy Chapter 13, it can affect your friend's credit scores. It's true that the bankruptcy itself will not affect your friend's credit scores as he is not the one who is filing the bankruptcy. But if his ex, who is filing the bankruptcy, does not make the payments as per the Chapter 13 plan, his credit will be affected adversely.
However, does the divorce decree state it clearly that your friend is released from the liability of these debts? In that case, he does not have any responsibility to pay off those debts. If his ex stops making the payments, his credit should be safe.
If your friend's ex-spouse files bankruptcy Chapter 13, it can affect your friend's credit scores. It's true that the bankruptcy itself will not affect your friend's credit scores as he is not the one who is filing the bankruptcy. But if his ex, who is filing the bankruptcy, does not make the payments as per the Chapter 13 plan, his credit will be affected adversely.
However, does the divorce decree state it clearly that your friend is released from the liability of these debts? In that case, he does not have any responsibility to pay off those debts. If his ex stops making the payments, his credit should be safe.
Hi,
Whether your friend's credit will be effected or not totally depends on the divorce decree. If it is mentioned that he is free from the liabilities of the debts in which he is a co-signer then it will not effect his credit score but if not then if his ex-spouse fails to make payments then it will effect his credit score.
Whether your friend's credit will be effected or not totally depends on the divorce decree. If it is mentioned that he is free from the liabilities of the debts in which he is a co-signer then it will not effect his credit score but if not then if his ex-spouse fails to make payments then it will effect his credit score.