Bunch Of Credit Problems

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Expert, localized Los Angeles answers provided by Heather Roy

Bunch Of Credit Problems
	Dear Edith, I have my name on a mortgage from a previous marriage.I plan on getting a divorce within a couple of months.My fiancée has filed bankruptcy and her credit report says it should stay on until April 2006.I have three credit cards with zero balance and a credit limit of $6,000 each. We want to have the best credit rating we can when applying for a mortgage.So my first question is will the bankruptcy just be removed or does she have to do something to have it removed?Another question is should I close those credit cards?My last question is will my name on the other mortgage affect my chances of being approved for a new one?

	Although a bankruptcy stays on the credit record for ten years, most mortgage lenders will ignore it after four years have passed since the discharge (not the filing.) Some will even overlook it after only two years. Those zero-balance credit cards won’t hurt your credit score and may even help, so keep them. As for the old mortgage: yes it does count as a debt payment against you, even if someone else is paying it.There are two solutions for the problem.If your ex is willing to go through the process of proving she is financially qualified to carry the payments on her own, sometimes the lender will release you from liability.And for some new mortgage loans, the old debt will be ignored if you can prove (cancelled checks) that your ex has been making the payments alone.
	Edith Originally published on January 6, 2006

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