Posted on: 02nd Jan, 2006 12:16 pm
Hi,
I wanted to know as to how does divorce affect a person's credit.
I wanted to know as to how does divorce affect a person's credit.
Hi Brocly,
Normally, it doesn't. But what does happen in these cases is sometimes there are debts that are disputed as to who is reponsible to pay them and as a result neither party pays. If it is a joint account, both credit histories get negatively affected. If you are not sure get a copy of your credit report before the divorce agreement is drawn up. It will show who is the party responsible or whether the account is in both names.
Normally, it doesn't. But what does happen in these cases is sometimes there are debts that are disputed as to who is reponsible to pay them and as a result neither party pays. If it is a joint account, both credit histories get negatively affected. If you are not sure get a copy of your credit report before the divorce agreement is drawn up. It will show who is the party responsible or whether the account is in both names.
Hi,
The original contract is not superdeded by a divorce decree you have with the creditor and you are also bound to the legal responsibilities on any of the accounts. You will have to contact each creditor individually to seek their legal binding release of your obligation. Only after that can your credit history be updated accordingly.
The original contract is not superdeded by a divorce decree you have with the creditor and you are also bound to the legal responsibilities on any of the accounts. You will have to contact each creditor individually to seek their legal binding release of your obligation. Only after that can your credit history be updated accordingly.
Hi Brocly,
Both Elmar and Lydell are correct as they say that a divorce does not change the the loan contract. Even if you get a divorce, each one of you remain liable to pay down the debts. What you can do is to re-establish your own distinct credit line after you get a divorce from your spouse.
Thanks,
Caron.
Both Elmar and Lydell are correct as they say that a divorce does not change the the loan contract. Even if you get a divorce, each one of you remain liable to pay down the debts. What you can do is to re-establish your own distinct credit line after you get a divorce from your spouse.
Thanks,
Caron.
Hi Brocly,
It is not clear whether there are any loans against you or not? If there are loans and it is joint then both are responsible for the loans. It this case the divorce decree is very important as to check what is mentioned in the decree. If it is mentioned that you are only responsible for the debts then you have to pay those dues. And if it is mentioned as joint then if you do not make payments then both of your credit will be affected. Pull up your credit report and check the dues and also ckeck the name of the person responsible for the loan.
It is not clear whether there are any loans against you or not? If there are loans and it is joint then both are responsible for the loans. It this case the divorce decree is very important as to check what is mentioned in the decree. If it is mentioned that you are only responsible for the debts then you have to pay those dues. And if it is mentioned as joint then if you do not make payments then both of your credit will be affected. Pull up your credit report and check the dues and also ckeck the name of the person responsible for the loan.