Joint credit card debt after divorce - who pays credit card bills?
Facts about joint credit card debt after divorce. A divorce decree may declare which spouse pays credit card bills, but divorcing does not relieve either party. Maybe credit counseling or debt settlement is right for you.
Important things to know about divorce decrees & credit. A divorce decree can endanger credit, and joint debts remain joint debts. Re-assigning debt in divorce decrees does not relieve a spouse of debt responsibility.
Settle joint credit card debt
Getting a divorce and want to remove a spouse or yourself from credit card debt? A divorce decree cannot fully remove a spouse from a credit obligation. One way to solve this problem is to negotiate a debt settlement.
Joint debts remain joint debts. Both spouses signed a legally binding contract with the creditor, and a divorce decree neither amends this contract nor relieves the creditor's investment in you. Amendment of any contract requires agreement by all parties, including the creditor, and proof of the amendment requires the signature of all parties. During a divorce, the creditors are not part of the divorce courts, and therefore the original agreements/contracts stand.
If you have a joint financial obligation with your ex-spouse, and your divorce decree states that your ex-spouse is responsible, and your ex-spouse is delinquent on paying, your credit as well as his/hers is affected. As is stated above, your legal responsibility for a debt does not go away because a divorce decree assigns responsibility for a debt to your ex-spouse. Along with a legal responsibility to pay comes the right of the creditor to report a debt delinquent on your credit report if it's not paid as agreed in the original contract.
Especially tragic are situations where one ex-spouse files bankruptcy and includes many joint debts in the bankruptcy. The spouse not filing bankruptcy is left holding the bag for these joint debts, and many times they're not notified of the ex-spouse's filing until months or years down the road when it's too late to correct the situation. So not only is the spouse who didn't file responsible for the unpaid debts and can be legally sued for them, but the non-filing bankruptcy spouse's credit is also ruined, something that cannot be corrected, as the credit bureaus have the right to report them delinquent.
The purpose of divorce is to split off emotionally and financially from your ex-spouse. If you aren't careful, your spouse's handling of your once-joint accounts can haunt for years. If you had joint debts which existed before your divorce, and these accounts are not both paid off and closed, you're just asking for trouble. Also, although some divorcing couples are definitely out to get each other, most problems with joint accounts prior to divorce are caused by ignorance, not malicious intent. Don't think that just because your split is amicable that problems can't occur. Taking precautions can protect BOTH of you. Order a credit report and review all outstanding debts.
Searching online for debt relief, may yield results for many links to websites that may say there are Federal grants available to pay debts. Some of the sites may ask for money in order to get the secrets or information for debt money. Many consumers have made the mistake of giving money and got disappointed that the government is not going to just send them a check in order for them to payoff their credit cards.
The idea that there are grants to get money to pay bills is appealing to many consumers, so appealing that they are willing to pay money. There are some examples of government help, for example, recent mortgage problems that millions of people have experienced, and being at risk of loosing their homes. The government assisted and provided some means, so people who qualified could try to keep their homes through a loan modification program. They did not step in and pay the mortgage, but provided a way that homeowners could try to keep their home by working out a better payment plan.
There are debt relief services that offer some effective and affordable solutions to consumers, in an effort to help them get debts under control, and there are usually some fees for this service. When people are not successful at reducing debts, debt relief services may be very helpful. When faced with high monthly payments that have high interest rates or accumulated late fees, some of these debt companies have helped people get rates reduced and late fees dropped.
One reason debt services are able to do this, is because they work with companies every day and negotiate between borrowers and creditors for something that will benefit both parties. After all, when borrowers file bankruptcy, a creditor may end up not getting paid at all. Many debt settlement companies are good at negotiating and can sometimes get creditors to settle for a much lower payoff than what is actually owed. Many of these companies require a specific amount of unsecured debt from applicants, it could require a minimum of around $10,000 or more in debt.
Review Disclaimer:
Review information was gleaned from the website, and is neither an endorsement by us nor an confirmation of content nor a warranty of any promises made by the website. Use the review information at your sole discretion and sole liability.
Consumer Credit Counseling helps you with budgeting and debt repayment options, as well as helping you to avoid filing bankruptcy.
CCCS Debt Relief Review: The majority of CCC agencies offer confidential budget counseling, and debt management programs. Debt management programs, also known as debt consolidation programs, are available on the Internet, by telephone and in person, at a nominal fee.
What Does CCCS Do? There are so many CCC agencies, it would be impossible for us to tell you what each one will, and will not do. Our review of CCC is an overall view of their offerings with more details provided about the Debt Management Program.
CCCS agencies have set up alliances with major creditors to:
* reduce or eliminate interest
* stop late payment fees
* reduce monthly payments
* educate consumers on money management
* negotiate debt repayment plans
Creditors participate because it is in their best interests for you get out of debt without bankruptcy. In most instances, if you file Chapter 7 Liquidation Bankruptcy, unsecured creditors won't collect anything.
Debt consolidation loans allow you to borrow to refinance or restructure debt. The options you have to have to borrow money, and make one monthly payment until you are out of debt include refinancing your mortgage or getting a home equity loan, equity loans, personal loans, etc.
What Do Debt Consolidation Loans Involve? They involve applying for the loan, being approved, then revising your budget to remove the paid debts, and including payment for new loans. It is important for your financial future, that you don't incur any more debt while making consolidation loan payments. If you do, you could find yourself back in over your head, and on your way to bankruptcy.
Quick Tips For Debt Consolidation Loans: If you haven't already done the Debt Worksheet (available in our printable monthly budget form), do it now. Review your Debt Worksheet so you know how much you need to borrow, and what interest rates you are currently paying.
* Do the Income Worksheet and Monthly Budget so you know how much of a payment you can afford.
* There is no fee, or obligation, when you apply online for a consolidation loan, so you can shop around for the best rate, and payment terms, you can get.
* Allow yourself some leeway in your budget when calculating payments on consolidation loans. This will help you to pay it off faster and save interest.
Debt Settlement, or debt negotiation, is the act of contacting your creditors and negotiating a lump sum payoff of your debt. If you are behind on paying your debts, sometimes you will even get a letter from the creditor directly offering a settlement amount of around 50% of your balance if you pay them in full within 10 to 20 days.
How To Negotiate Terms To Payoff Your Debts: You can do this, directly, or you can hire a professional debt negotiator, or arbitrator. It is not uncommon to pay 50% or less of the principal on your debt as settlement in full.
If you have access to money to use to make a lump sum payoff of your debts, then this will save you the most money in interest, and principal payments, of any debt relief program outside of bankruptcy. You should keep in mind, however, that some creditors may report your settlement to the major credit bureaus. However, when trying to get out of debt, and protect your credit as much as possible, debt settlement can be the most economical option for you.
Determining What You Can Afford: Some of the more common ways to get money to do a lump sum payoff are through savings, tax refunds, second mortgages, home equity loans, or refinance of existing mortgages, among others.
Chargeoff credit card - How to charge off credit card balances yourself, or get professional help from a debt settlement company.
Auto Loan: Get free quotes and apply for a new or used auto loan or for auto refinancing.
Credit Card: Search for secured and unsecured credit card applications and apply online. Applications for all types of cards ranging from an instant approval bad credit card to no deposit cards, including platinum credit card rewards.
Credit Report: Free credit report help to fix credit report errors and improve credit score ratings. You are entitled to one free credit report annually.
Free Credit Offers: Get no obligation, free credit offers plus financial tips to help effectively manage your personal finances.
Home Loan: Free multiple quotes from mortgage lenders. Apply for a new home loan and start building your financial security.
Mortgage Refinancing: 2nd mortgage loan and other types of mortgage refinancing for home remodeling, equity cash out or a debt consolidation loan and more.
Payday Loan: Easy approval bad credit unsecured loan with no credit check, no deposit and no security.
Personal Loan: Submit a short or long term personal loan application (if available), or apply for other secured or unsecured loan offers.
Personal Finance: How to file bankruptcy plus free bankruptcy forms. Create a household personal budget, balance a checkbook register, track expenses and more.
How to get money to pay bills: *Change your tax withholding to include all of your dependents. You won't likely get a tax refund, but your paychecks will be a bit larger due to less money being withheld. Some people list the minimum amount of dependents so they can get a hefty tax refund, yet that's not the wisest choice. You'd make more money by claiming all your dependents on your W4, and then placing the extra paycheck amount into a savings account or an investment plan. *Request a pay raise or overtime or extra work. If that's not possible, get extra employment, even part-time. *If you have a special skill or talent, advertise it to your friends and neighbors in exchange for money, goods, or as trade for things like baby-sitting. Instead of paying for services such as lawn maintenance, computer repair, babysitting, etc, you can trade your services for those of others. *Take advantage of coupons when shopping. This can save you plenty of money as those coupons add up. Some coupons are for dollars-off, not just cents.
