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Divorce and your credit rating.
Many people who go through a divorce end
up filing for bankruptcy either to save their homes or
because of declining credit ratings due to one spouse
discontinuing payments on joint bills and because of a
loss of a 2nd income and they can no longer afford to
make the payments any further. Getting a divorce can be
an extremely difficult time because of the potential
credit problems with your credit rating along with the
hardships that divorce provide anyhow.
Going through a divorce can be a difficult time emotionally as well as financially. There are many things to consider when going through a divorce to help protect your credit rating due to a split up of incomes and assets. You can often settle your divorce by doing a
cash out refinance and pay off your spouse. Give us a call at 888-418-4467 or email at dave@gofirstsecurity.com to review your case. Any credit cards, installment loans or any other debt may be in both spouses name and if no payments are made or payments are late it may affect both credit histories affecting your credit scores and the ability to get a mortgage on the terms that you would want. If you divorce, you may want to close joint accounts or accounts in which your former spouse was an authorized user. Or ask the creditor to convert these accounts to individual accounts in order to help protect your credit. Even though your former spouse may be obligated to pay a certain debt through the divorce, if they do not, it is still going to affect your credit if you do not remove yourself from the account. Just because you and your spouse are no longer together does not mean that you are not obligated to pay a debt that you originally agreed to pay. Instead of dividing assets and debts, it often makes more sense to sell assets to pay off debts. Then divide the remaining assets.
If you do not, the court will divide the debts, including credit cards, mortgages and car loans. The lenders
are under no obligation to remove you from your ex-spouse's obligations. In fact, your ex-spouse may not qualify to refinance those obligations.
Even after your divorce is final, you may find yourself tied to him or her financially for many years to come.
Contact
If you have any questions regarding our products, you can contact
us by calling or e-mailing us and we'll get back to you
as soon as possible. Thanks!
Information listed above is to be used for educational purposes only and is not guaranteed
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