Articles Tagged with credit score

Credit-repair-101-300x200Filing bankruptcy is a powerful tool you can use to get free of debt and give yourself a fresh financial start. Part of this is the opportunity to repair your credit going forward. While your credit will take an initial hit right after filing, there are many ways to restore it. Bankruptcy stays on your record for 10 years in most cases. If you don’t take action to increase your credit score during this time, you might find it difficult to lease an apartment or buy a car. It is important that you move as soon as possible to start restoring your credit after you file bankruptcy.

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If you file bankruptcy in Jacksonville, consider why you had to in the first place. Was it due to overspending? Medical expenses? Loss of employment? Figuring out the cause of your situation will help you in making an effective plan moving forward. After figuring that out, create a budget to keep track of your expenses. This will help you avoid unnecessary spending that will hinder your goals of credit restoration. When you have a solid budget in place, get free annual credit checks to keep track of your score.

divoice-court-desk-300x200Joint debt is considered to be any debt created by one or both spouses during the marriage. Upon divorce in Florida, the court decides which spouse is responsible for which joint debt. However, divorce court orders do not affect creditors, who will likely hold both partners liable for joint debt regardless of which spouse the court deemed liable. Common joint debts may include car loans, mortgages, credit card debt or other lines of credit. Below we answer some common questions about how joint debts are handled after divorce.

What Happens if the Court Ordered Spouse Decides Not to Pay Their Debt?

When a couple goes through a divorce in Florida, problems may arise if the spouse that was required by the court to pay the debt does not do so. Even if the final judgment in a divorce decree requires one spouse to be fully responsible for joint debt, that order holds no jurisdiction over the creditor. The creditor is likely to seek payment from the other spouse if the one ordered to pay fails to.

a married couple linking arms while sitting
If you and your spouse are contemplating filing for bankruptcy, you may wonder if you are required to file jointly. Married couples can, in fact, file separately. When filing for bankruptcy in Jacksonville, married couples have the following options when choosing to file for Chapter 7 or Chapter 13:

  • One spouse files individually
  • Both spouses file individually

a vice squeezing a leather walletNegative information on your credit report can make a big impact on your financial well-being. It can disqualify you from obtaining home mortgages and car loans, cause your interest rates to soar and may even keep you from getting the job you want. It goes without saying that you would want any negative information removed from your credit report as soon as the time limit for that debt has been reached.

So, what is that limit and how long will negative info remain on your credit report? It is important to be familiar with the two important time lines for debt—the statute of limitations and the credit reporting time limit.

The statute of limitations is the limited amount of time creditors or debt collectors have to file a lawsuit to collect a debt. It is what protects you from being sued for an old debt. The time period varies from state to state. In the state of Florida, the statute of limitations is 4 years on oral contracts and 5 years on written contracts. The clock typically starts ticking after the first missed payment to the original creditor. However, be aware that the limitations period can “restart” if you make a payment toward a debt. Debt collectors will often harangue debtors into making even a $5 payment toward a delinquent account in order to re-age the debt and add another 5 years to the limitations period!