How much does your credit score go down after filing Chapter 7 bankruptcy?

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Answered by Eric Simonds, Financial Advisor in Brunswick, ME
There is no percentage or fixed number. In general, the higher your score, the more if will decrease once bankruptcy is filed. Fair Isaac Corporation (FICO) often updates how "common" credit events affect your score. According to FICO (who should know) a person with a credit score of 680, filing for bankruptcy will lower your score by 130-150 points. For a person with a score of 780, filing for bankruptcy will cost you 220-240 points. The higher your score, the more points you’ll lose for filing for bankruptcy. The lower your score, the less it costs you. To give some perspective, a foreclosure will cost you 85-105 points if your score was 680. If your score was 780, you’re looking at a drop of 140-160 points.

Please let me know if you have any follow up questions. | 04.19.16 @ 19:56
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