Released on = May 28, 2007, 2:03 am

Press Release Author = Mike Berrios

Industry = Real Estate

Press Release Summary = Most married couples forget about the impact a late does on
their credit. A lot of times there is a dispute over who is responsible for what.

Press Release Body = For immediate release May 28, 2007

Protecting Your Credit During Divorce

Mike Berrios, President
Integrity Home Finance

Rancho Cucamonga, CA - When a marriage ends in divorce, the lives of those involved
are changed forever. During this time of upheaval, one thing that shouldn't have to
change is the credit status you've worked so hard to achieve.

Unfortunately, for many, the experience is the exact opposite. Unfulfilled promises
to pay bills, the maxing out of credit cards, and a total breakdown in communication
frequently lead to the annihilation of at least one spouse's credit. Depending upon
how finances are structured, it can sometimes have a negative impact on both
parties.

The good news is it doesn't have to be this way. By taking a proactive approach and
creating a specific plan to maintain one's credit status, anyone can ensure that
"starting over" doesn't have to mean rebuilding credit.

The first step for anyone going through a divorce is to obtain copies of your credit
report from the 3 major agencies: Equifax, Experian®, and TransUnion®. It's
impossible to formulate a plan without having a complete understanding of the
situation. (Once a year, you may obtain a free credit report by visiting
www.AnnualCreditReport.com.)

Once you've gathered the facts, you can begin to address what's most important.
Create a spreadsheet, and list all of the accounts that are currently open. For each
entry, fill in columns with the following information: creditor name, contact
number, the account number, type of account (e.g. credit card, car loan, etc.),
account status (e.g. current, past due), account balance, minimum monthly payment
amount, and who is vested in the account (joint/individual/authorized signer).

Now that you have this information at your fingertips, it's time to make a plan.

There are two types of credit accounts, and each is handled differently during a
divorce. The first type is a secured account, meaning it's attached to an asset. The
most common secured
accounts are car loans and home mortgages. The second type is an unsecured account.
These accounts are typically credit cards and charge cards, and they have no assets
attached.

When it comes to a secured account, your best option is to sell the asset. This way
the loan is paid off and your name is no longer attached. The next best option is to
refinance the loan. In other words, one spouse buys out the other. This only works,
however, if the purchasing spouse can qualify for a loan by themselves and can
assume payments on their own. Your last option is to keep your name on the loan.
This is the most risky option because if you're not the one making the payment, your
credit is truly vulnerable. If you decide to keep your name on the loan, make sure
your name is also kept on the title. The worst case scenario is being stuck paying
for something that you do not legally own.

In the case of a mortgage, enlisting the aid of a qualified mortgage professional is
extremely important. This individual will review your existing home loan along with
the equity you've built up and help you to determine the best course of action.

When it comes to unsecured accounts, you will need to act quickly. It's important to
know which spouse (if not both) is vested. If you are merely a signer on the
account, have your name removed immediately. If you are the vested party and your
spouse is a signer, have their name removed. Any joint accounts (both parties
vested) that do not carry a balance should be closed immediately.

If there are jointly vested accounts which carry a balance, your best option is to
have them frozen. This will ensure that no future charges can be made to the
accounts. When an account is frozen, however, it is frozen for both parties. If you
do not have any credit cards in your name, it is recommended you obtain one before
freezing all of your jointly vested accounts. By having a card in your own name, you
now have the option of transferring any joint balances into your account,
guaranteeing they'll get paid.

Ensuring payment on a debt which carries your name is paramount when it comes to
preserving credit. Keep in mind that one 30-day late payment can drop your credit
score as much as 75 points. It is also important to know that a divorce decree does
not override any agreement you have with a creditor. So, regardless of which spouse
is ordered to pay by the judge, not doing so will affect the credit score of both
parties. The message here is to not only eliminate all joint accounts, but to do it
quickly.

Divorce is difficult for everyone involved. By taking these steps, you can ensure
that your credit remains intact.


Mike Berrios is affiliated with Integrity Home Finance, an Equal Housing Lender,
California Department of Corporations. If you would like to obtain a free Consumer
Credit Scoring Booklet, please contact Mike Berrios at 800-680-3649
www.integrityhomefinance.com
mberrios@ihfinance.com



# # #


SUBMITTED BY:
Mike Berrios
800.680.3649
909.945.8778
mberrios@ihfinance.com


Web Site = http://integrityhomefinance.com

Contact Details = Mike Berrios
Integrity Home Finance
10601 Civic Center Dr. #140
Rancho Cucamonga, CA 91730
800.680.3649
mberrios@ihfinance.com
www.integrityhomefinance.com