bankruptcy and credit score

[crystalclean990]

Does anyone know for sure if a bankruptcy on your credit record would increase or decrease your score? The fico website says that it will decrease it and a couple of loan officers say that it will increase it.

 

[borderline53]

It depends on your situation before the BK. If you had lots of collection agencies after you, your score will probably go up. They can no longer collect on the debts. Conversely if you were never late with a payment, then filed BK your score will take a nose dive.


Just depends on what your credit situation was prior to the filing of your Bk.