What happens to credit card debt when you divorce?

What happens to credit card debt when you divorce?

When you get a divorce, you are still responsible for any debt in your name. Most states follow “common law,” which means that a court will hold you responsible for any credit card debt that is solely in your name, and will hold you jointly liable for credit card debt that is in both your name and your spouse’s name.

Can I be held responsible for my wife’s credit card debt?

If your ex charged that $39,000 on a joint Visa card in both your names, you are equally liable for the debt. Also, if you co-sign on your spouse’s credit card, you are on the hook for whatever bills are run up on that account. Regardless of what state you live in, it’s not easy to totally protect yourself.

Can a spouse ruin your credit?

Getting married and changing your name won’t affect your credit reports, credit history or credit scores. One spouse’s poor credit won’t impact the other spouse — unless you jointly apply for a loan or open a joint account. Married couples do not have to apply for credit together.

What happens when someone with good credit marries someone with bad credit?

Marrying a person with a bad credit history won’t affect your own credit record. You and your spouse will continue to have separate credit reports after you marry. However, any debts you take on jointly will be reported on both your and your spouse’s credit reports.

Can you buy a house if your spouse has bad credit?

Yes, in fact, there are several options when buying with a spouse who has bad credit: Apply as a solo applicant: The simplest option is to apply for a home loan by yourself as a solo applicant. This requires you to be able to service the loan on a single income and only your name will be on the property title.

How long does it take to rebuild your credit after debt settlement?

12 to 24 months

What is a good debt settlement offer?

Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.