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cal4807  
#1 Posted : Saturday, May 25, 2019 7:50:06 AM(UTC)
cal4807

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TL:DR- Crappy credit from divorce and a business. Started making payments on charge offs this month as I finally paid all of my ex wife's debts. Am I screwed or what can I do to further mitigate?

Hi. I know this has been beaten to death on this forum but I was hoping to get some insight/suggestions from anyone with experience in this process. I was offered a position as a contract specialist. I have completed the onboarding and fingerprints but still waiting on either the SF-85p (I am assuming this is the form I will be getting) or SF-85. Let me give background on myself. I am 32. I have worked crap jobs since I left college in 2009.I was making around 32k most of the time but this was mitigated by the fact I was married and my wife made more.

In October 2013 I had great credit even though I was in a business that was not making any money and I was in the process of giving up my share to my business partner. My ex wife and I separated with the intent to divorce. In order to make things easy, I agreed to take all of the credit cards. Hers, mine, and ours. This totaled around $10k. She was to take the house and payment. This is all laid out in our divorce agreement. I got a small apartment, got rid of my business in the beginning of 2014, and made the necessary payments from savings. Shortly after, I to move to Texas with a buddy to get a job and he ended up bailing without notice to move back to PA with his parents due to anxiety and depression. At this point, I made the plan to move back to PA myself once the lease was up in six months and until then make due. My credit cards accrued balances due to being unemployed and needing to pay for a large apartment by myself but again, I made the payments. My divorce was finalized in 10/2014.

In April 2015 I moved home to my parents with the intent to get a job, which I was able to do by August 2015. It didn't pay much but I had enough to pay bills and credit cards. At this point, I still have never missed a payment on anything. Now comes the sticky part in the beginning of 2016. Ex-wife cannot pay mortgage anymore. Even though she agreed to it. I realized there was no point in attempting to go to court or anything and it would wreck my credit regardless so I decided to just take it back to not have a foreclosure, knowing this would put me in a pinch. Our divorce agreement was modified and it even says she was unable to pay the mortgage. Fast forward six months of robbing Peter to pay Paul I hit a point where I could not pay her credit cards, mine, and the mortgage. I was only making about $38k. I figured out what I could pay and had to stop paying on the rest until I was caught up. I continued to pay on her cards(since I agreed to in the mortgage agreement) and the mortgage. I allowed 4 of my cards totaling $18k to be charged off between January 2017 and June 2018. Only 1700 of that hit collections.

Fast forward to today. My credit score is 632 (I know this isn't factored in but for a reference) up from 500 two years ago. I haven't missed a payment since my last charge off in the beginning of 2018. I made my last payment this month on my ex-wife debts and set up payment plans on my 4 cards in charge off. I have also paid down my own credit card balances significantly. I attempted to work with credit counselors but I was able to come up with my own repayment plans that got me out of debt fast, which I charted out on spreadsheets. I never missed a house payment, car payment, any of my other 4 credit card payments.

My question: Is there anything I can do to further mitigate? I will be providing proof of all payment plans, proof of credit counseling, both divorce agreements, and my repayment spreadsheet. Or am I just screwed? Is there anything in my explanation I should explain better?

frankgonzalez  
#2 Posted : Tuesday, May 28, 2019 2:17:44 AM(UTC)
frankgonzalez

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1st, if the divorce agreement said she was the make the mortgage, did you also turn over your equity in the house? If so, then it should not have impacted your credit as it would have all been on her. in other words, you should have consulted an attorney before agreeing to take over those payments (do you get this house now? Or is it split between you and your ex? Or does your ex get to keep the house you are paying for?)
You should have voted Cthulu...the greatest of all Evils
cal4807  
#3 Posted : Wednesday, May 29, 2019 3:33:41 PM(UTC)
cal4807

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She did agree to turn over all equity, which at that time was $5k. I couldn't even sell it because realtor fees would have cut into what I owed by a lot (I spoke with them) I assumed the loan and put the dead back in my name as well. The problem wasn't that she didn't pay it. The problem was that she told me she couldn't pay it anymore. So I had a choice of either going through a court battle and still getting a foreclosure (or at minimum, many months of missed payments on the mortgage due to her) or just attempting to take house back over myself. In doing so, I ended up overextended and got behind. Due to staying on good terms because of my daughter and knowing that the court wouldn't have saved my credit, I chose to at least try to pay it (as well as the originally agreed upon debts).
frankgonzalez  
#4 Posted : Thursday, May 30, 2019 3:03:46 AM(UTC)
frankgonzalez

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Ok...that is what you say to the investigator when asked. You have a plan, you are working the plan, and paying down the debts. At least you ended up with the house.
You should have voted Cthulu...the greatest of all Evils
Woodytech21  
#5 Posted : Monday, July 22, 2019 10:19:40 AM(UTC)
Woodytech21

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Hello, I read your forum and I am currently going thru a contract position too. I am in the middle doing a finger print at a share location next week.. Did you get the job? And..any updates.
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