How will spouse's BK effect our joint mortgage?

[ahcomeon]

Hello,

My spouse may have to file chapter 7 to get out from under a lot of medical debt. The only debt we have is her medical and our joint mortgage. The medical debt is in her name only.

If she opts to file chapter 7 how will the joint mortgage show on my credit report? Even though I would not be party to the BK would the mortgage show as IIB on my credit report? I am just wondering if and how badly my credit rating will be impacted should she file BK. I understand her BK would not show on my report, but if our joint mortgage shows that it was IIB I would suspect that would have a significant negative impact on my credit.

Thanks

[justbroke]

The account should show as IIB on her report and "Open" on your credit report. There should be no evidence of the bankruptcy on your credit report. If the creditor erroneously reports the account on your report as IIB, then just dispute the entry. Yes, it would have a negative impact and hurt your score somewhat -- but not as bad as a "fresh" bankruptcy item.

Just stay on top of it.

[ahcomeon]

Hi justbroke, thanks for replying. I hope that is how it works. I had someone tell me it would show IIB on my reports since the account would technically be IIB and it is a joint account. Thanks again.

[justbroke]

Hi justbroke, thanks for replying. I hope that is how it works. I had someone tell me it would show IIB on my reports since the account would technically be IIB and it is a joint account. Thanks again.

Massachusetts isn't a community property state. Even with that, the creditor "may" make the mistake and mark the account as IIB on your credit report. I would just dispute it with both the creditor and the credit bureaus if it does get marked IIB. I would say that's an incorrect reporting under the FCRA (Federal Credit Reporting Act), since it was not discharged, as to you personally.

[IamOld]

justbroke is EXACTLY right - spouse filed for 13 a few months ago and it does NOT show up on my credit report. You are each jointly and SEPARATELY liable for the mort. So even if her liability is discharged, yours isn't, and does not effect YOURS.

[ahcomeon]

Thanks all for your responses. I feel better now. My wife's situation is unfortunate but the idea of my credit being dinged after all the work I have done to reach almost 800 fico scores was making me very nervous.