Unfortunately, this is a common problem in divorces. A divorce decree does not supersede binding, joint credit agreements. In other words, it really does not matter what a judge determines during the divorce settlement. If someone has co-signed loan agreements and joint credit card accounts, they are responsible regardless of what was supposed to be done according to the divorce agreement. That said, consumers always have the right to have a 100-word addendum added to their credit report describing their side of a negative situation. This might be helpful in getting loans in the future, but there are no guarantees. You should be able to get the form needed from the credit reporting agency which is reporting the collection action. You may have to do this individually with all three of the major credit reporting agencies (Experian, Equifax, and TransUnion). It is possible that you might find help with a non-profit credit counseling agency. They have long-term relationships with creditors and many times are able to negotiate on behalf of consumers to get balances reduced or at least to reduce the interest rate so that the balance can be repaid faster. The Web site for the National Foundation for Credit Counseling is: www.nfcc.org/. The toll-free number to find a location near you is 800-388-2227. We would like your feedback on this Personal Finance Frequently Asked Question.

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