Credit Repair - Self Help

There are several myths about divorce and how it pertains to your debts. Let me say that I know from experience how this works. In the next couple of posts I am going to debunk some of the myths associated with divorce and credit and also give some hints to protect your credit during divorce.

A lot of divorce lawyers will tell you that your divorce decree is acceptable for the creditors to relieve you from your debts if they were “awarded” to your ex. Well, this is wrong information. Creditors will not accept a divorce decree to relieve you of those debts. If you have joint debt with your ex, it is going to remain joint debt as far as the creditors are concerned. The fact is that when people apply for joint credit, that is an agreement (a signed contract in most cases) that both parties will repay the debt, if one party cannot pay, it falls on the other. A civil divorce judgment cannot override this.

What really sucks is when one of the ex-spouses files for bankruptcy and includes several joint accounts, they more or less get “off the hook” as far as the debt goes and the other spouse is left holding the bag and can be made to pay all of those debts as well and even be sued by the creditors for repayment. Your divorce decree will not matter. This was my case. My ex and I had each been “awarded” certain debts in the divorce decree. She did not pay one single debt that she owed and eventually filed bankruptcy. I suddenly became overwhelmed with creditors knocking down my door and ringing my phone.

Next post will tell you how to protect yourself going into the divorce.