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Author: mrmeyer Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1260  
Subject: Marriage and Bankruptcy Date: 4/6/2005 5:11 PM
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I don't know if anybody still reads this forum. :/

I'm getting ready to remarry my ex-wife (long story). We've been divorced 8 years, and she filed for bankrupcty last year.

I have excellent credit and some assets, including savings, 401k, and IRA.

Will marriage affect my credit score for future loans? Anything special I should do to mitigate that?
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Author: jgenduso1 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1248 of 1260
Subject: Re: Marriage and Bankruptcy Date: 4/7/2005 2:05 PM
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ASAIK,

Credit Reports do not merge.

As long as you understand that if you purchase items together the account will show up on both your reports. Biut besides that none of her credit should show up on yours.

I figure you probably know this but, if you apply jointly for loans then her score will drag down the overall rating for someone to lend you money.

Hope this helps,

Joseph

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Author: mrmeyer Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1249 of 1260
Subject: Re: Marriage and Bankruptcy Date: 4/7/2005 2:41 PM
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It does... how can I be sure credit reports don't merge?

From your description, it may only be an issue if we buy a major item together, and I may have to buy it separately if the credit score affects the interest rate.

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Author: jgenduso1 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1250 of 1260
Subject: Re: Marriage and Bankruptcy Date: 4/7/2005 3:47 PM
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Also, So my question, what would happen to me if he did file bankruptcy? I don't want any impact to my credit but we would need joint credit to buy a house in the near future (assuming he gets a job).

His credit report will be trashed and yours should remain relatively unscathed. Some of his creditors may try to claim you are jointly responsible for his debts, even when you clearly are not, so additional diligence on your part will probably be necessary to fight such claims.

Also if you live in a community property states, any communal assets will be subject to seizure to satisfy his debts in bankruptcy (or otherwise). Fortunately most community property states also have larger exemptions that help offset this problem slightly.

Buying a house with his name on the loan will probably not be possible in the immediate future. If you do include him, it will at least cost you a few points in interest. If you don't need his income to qualify for the home loan, this may not matter - you can purchase the house in your name alone.


MRM,

Here's a response to a similar question (in Bold) from Joel Corely (regular on the CC board).

Joseph

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Author: mrmeyer Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1251 of 1260
Subject: Re: Marriage and Bankruptcy Date: 4/8/2005 9:27 AM
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That's interesting. In our case, the bankruptcy is over, we're not yet married, and the house is solely in my name. It will become community property, but shouldn't be under any risk.

I appreciate your advice, thank you. What does "CC" stand for? I'd like to go visit that board next.

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Author: jgenduso1 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1252 of 1260
Subject: Re: Marriage and Bankruptcy Date: 4/8/2005 3:14 PM
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Its the consumer credit and credit card board. Here's a link.

Joseph

http://boards.fool.com/messages.asp?mid=22326069&bid=100145



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