The “Combined Credit Score” Myth
While lenders will generally look at both spouses credit reports prior to making significant loans, there is no such thing as a “combined credit score.” For example, if a woman with an 800 FICO score marries a man with a 600 credit score, the day after their wedding, there is no merging of credit scores that would result in each of them having a 700 FIC score. Each spouse has his/her own credit score based upon their credit history prior to marriage and post-nuptial activity. This is true whether you live in a community or non-community property state. For purposes of a credit report, your credit score will only be impacted by your spouse’s credit issues if you are both listed on the debt and neither of you are making timely payments.
In a divorce proceeding in a community property state you may be liable for your spouses debts incurred during marriage, but this same rule does not apply in bankruptcy. A debt solely held by one spouse can be discharged in bankruptcy and the creditor will not be able to pursue the non-filing spouse. Practically speaking, spouses should assist each other with debts whenever possible to keep both of their credit scores in good standing, which will aid in making large purchases such as cars and homes in the future.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
