Names and identifying details in this case study have been changed to protect our client’s privacy.

Separations are messy, and money is usually the messiest part. When Chris and his wife split, they agreed she would look after a credit card with a smaller bank. She didn’t pay it.

Chris found out the hard way. He applied for a home loan and was declined. The reason was a default of around $4,500 from that card.

Diagram of how this case was resolved: ex was meant to pay, bank asked to review, lodged in error, removed in 22 days

What the default was doing

He’d done nothing to run up the debt, but his name was on the account. In the eyes of a lender, that made it his problem. He couldn’t move forward with buying a home while it sat there.

What we found

Chris’s mortgage broker referred him to us. We asked the bank to review how and why the default had been lodged.

Why it came off

The bank reviewed the listing and accepted that the default had been lodged in error. Once it accepted that, it removed it.

The result

We started on 11 May. The default was gone on 2 June, 22 days later. Chris could go back to his home loan application with confidence.

What this means for you

Joint debts and debts your ex agreed to pay are behind a lot of the defaults we see. A separation agreement doesn’t bind the bank, so the listing can land on you anyway. That doesn’t mean it was listed properly. If you’re dealing with a default from a relationship breakdown, our credit repair lawyers can check how it got there.

This is a past matter. Names and identifying details have been changed to protect our client’s privacy.

Results depend on individual circumstances. Every credit file is different, and a past result doesn’t guarantee the outcome of your matter. This case study is general information, not legal advice.

Don’t spend another month stuck in Credit Prison. Call our credit repair lawyers on 1300 667 218 or book a 15-minute intro call at https://mycralawyers.com.au/15min-credit-repair-intro-call/ . If we think your chances are low, we’ll tell you straight.

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