Free Consultation
The office is open as per the NYS Covid-19 guidelines. We are now doing both in-person and telephone consultations. Please call the office at 718-855-6840 to schedule a time to speak with one of our experienced bankruptcy attorneys.

How much will a bankruptcy filing affect my FICO score?

How much does a bankruptcy filing affect your FICO score?  In the big picture, this may not be the right question to ask.

In 2010 FICO made public some–not all, just some–of the information behind their mysterious, black-box credit scoring system.

The answer to the bankruptcy question is:  It depends on the individual.  But it appears to be somewhere in the neighborhood of a 130 to 240 point drop, according to the data released by FICO.  (We’ve checked.  Nine years later FICO has not made any new numbers public, and we assume the numbers above are still good.) Though FYI, FICO stresses that the data is only a guide and the actual impact depends on the individual.

If you’re contemplating a bankruptcy filing in New York or anywhere else, however, how much it affects your credit score may not be the question on which to focus.  Why?  Because if you’re seriously considering bankruptcy as an option, then odds are you’re already in a difficult position and filing or not filing for bankruptcy won’t do much to hurt your score at that point anyway.  In fact, one of the interesting things revealed by FICO is that the lower your credit score is, the less it is impacted by a bankruptcy filing.

If you file for bankruptcy, your credit score will be affected.  But with your slate wiped clean, at least you have an opportunity to start rebuilding your credit.  And many of our clients actually rebuild their credit rather quickly.

If you try to tough it out, you may avoid whatever affect bankruptcy has on your score in the short run.  But if you’re laboring under significant debt and unable to make payments over time, then your credit score may be affected even more over time.  Plus, you won’t have that clean slate to give you breathing room to get things in order.

If you’re not sure what the right option is for you, the best thing you can do to address the situation is to talk to an experienced and trustworthy bankruptcy lawyer in New York.  A good bankruptcy lawyer with an established reputation is only going to recommend you file for bankruptcy if you really need to.  They’re going to ask you questions and make sure you understand the ins and outs of all of your options.

Please feel free to contact me if you’d like a free initial bankruptcy consultation so you can start addressing your financial issues, getting your questions answered and getting your financial life back under control.


EMAIL Bruce Weiner
(718) 855-6840 (Local)
(866) 402-8476 (Toll Free)
Fax (718) 625-1966

Go to bankruptcy attorney Brooklyn NY to learn more about Rosenberg Musso & Weiner LLP and/or to set up a free consultation.

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA

Recent Posts

Beware Grace Periods, Debtors

Too often, debtors see grace periods offered by lenders as free benefits. “Grace” makes it sound so innocent. However, debtors who routinely rely on grace periods when making payments will find themselves facing financial difficulties that might lead to bankruptcy. The reason is that although creditors offer grace periods to debtors, they also use them

Read More »

Bankruptcy May Not Rescue You From Vicious Personal Disputes

Bankruptcy is a technical process that assumes everyone working within it is mostly rational. To the extent that it expects parties to deviate from irrational behavior, the Bankruptcy Code and its accompanying rules include incentives to keep parties in line. Creditors are usually large and impersonal, and they rarely care if their debtors file bankruptcy.

Read More »

Non-Lawyers’ Explanations of Bankruptcy May Be Wrong

Do you have financial problems? Do you tend to ask your friends for advice? Is one of your friends an experienced New York bankruptcy lawyer who will explain the process for you? Are your friends otherwise knowledgeable people? The answer to these questions may be, “Yes but you don’t know it.” Although many bankruptcy lawyers

Read More »

6 Steps to Take Before Filing Bankruptcy

Leaving your case to an experienced New York bankruptcy lawyer is not the only step on the to-do list before filing bankruptcy. There are many things debtors should do (and not do) before they file, and the more organized and mindful debtors are, the easier the process will be and the more effective the result.

Read More »

Social Security Number Not Necessary for Bankruptcy

A question that’s commonly asked about New York bankruptcy is whether a debtor needs a Social Security number to file. Debtors ask because they sometimes run across the bankruptcy form title, “Your Statement About Your Social Security Numbers” (B 121), which asks debtors to list their current and prior Social Security numbers. The new bankruptcy

Read More »

How Can a Debtor (or Creditor) Get a New Trustee?

The trustee in a New York bankruptcy case is usually not the debtor’s ally. His or her purpose is mainly to administer the bankruptcy estate or ensure the debtor’s repayment plan goes according to plan. Trustees pursue preference payments, fraudulent conveyances, and other malfeasance committed by debtors. They frequently initiate adversary proceedings against debtors. In

Read More »
Scroll to Top