Digging out

i hope this site will help. just enter your zip and then search laws that might help you.




[size=2][color=red][Vikas: edited the post, please do not add external links, see tos][/color][/size]

Very unfortunate, but wanted to add for your information if you have not done so and there are still accounts in both of your names, then you need to write to past creditors request to close them account out, they don't have to if a balance is remaining, but once paid they can close the account and then issue two separate accounts.

You might check laws to see if you are in a community property state, meaning that regardless of above advice that both of you could still be held accountable for past joint debt.

If there is debt that he owes, usually you have to take the ex spouse to court to sue them for not honoring a divorce decree if he fails to pay on his agreed half.

Negative information can only stay on the credit report 7 years and there are statutes of limitations on how long a creditor can legally seek to collect a debt in court. If you expire that time, then you have a defense that the debt is time barred, would still need to appear in court if they took you, but the judge could dismiss the case due to SOL expiring.

There are few exceptions on the reporting laws to reporting periods 1) Tax liens can remain on the report forever if unpaid, or 7 years from the paid date. 2) Student Loans can remain forever if unpaid and then only 7 years once paid.

Then there is the matter of bankruptcy, if you file to get out from under the debt, chapter 13 (repayment plan) will show on credit report 7 years and if you file chapter 7 bankruptcy then 10 years can remain on the credit report, that is just the court listing, all accounts included in bankruptcy could be removed after 7 years from the file date on the bankruptcy.

If you don't go that route, but try to pay the creditors, then negotiate settlement in exchange for paid in full, or if they are willing, negotiate for removal of the negative item off of the credit report, some collection agencies are willing to do this.

Just understand if you settle with an amount not being paid exceeding $600 then that company can send you a 1099 form, for earned income tax that you would be expected to pay taxes on when filing comes around.

Hope this helps,

Hi jbrooks28

You posted your problem on 22nd march. I hope by now you must have grown stronger and also made a positive move towards erasing your debts. Tell us about it. We will like to hear from you soon.

Roxette

[quote=jbrooks28]Hi, there...I'm getting divorced and have learned that I have a lot of debt because bills in my name weren't paid (he was in charge of the money), and I am way behind on things. Is it really true that some companies will give loans to paople like me? I am willing to do whatever it takes to get out of debt and get my credit back on track! My total debt is approximately $6,000. Lots of medical bills, and old utilities. Any advice or help would be a blessing. Thanks... :wink:[/quote]

Hi, I am sorry to hear the bad news about the divorce. The important thing now is for you to take control of your life, especially your finances. So you said that he did not pay your bills and only paid his? This could turn into a potential legal issue for your case in the divorce proceedings. This potentially involves financial sabotage. Did you have an agreement about how the bills would be paid. Especially your bills? If he went against this agreement the judge may award more money in your favor in the divorce proceedings.

Your credit situation will determine if you will be eligible for loans. How is your credit score? If it is good, you may be approved; however, if it is bad, it may still be possible to get a loan if you find a creditworthy cosigner. If you have had a steady income for the past 2 years then that would also increase your chances for obtaining a loan. And if you are simply not creditworthy then you should look into finding a cosigner.

After this experience, you should know that it is very important for you to be a part of the financial decisions in the house. To protect yourself and to have a general awareness of how much money is going in and how much money is going out. You would have been able to catch this alleged sabotage earlier. So for your next relationship, just make sure that you are always responsible for all of your joint finances and give increased attention to the financial decisions involving your name.