Q:

What is a good bankruptcy score?

A:

Quick Answer

The lower a bankruptcy risk score, the better. According to Bankrate, bankruptcy risk scores range from negative numbers to 2,000. While these scores are hidden from consumers, businesses use them to decide whether to extend credit to a customer.

Know More
What is a good bankruptcy score?
Credit: Courtney Keating E+ Getty Images

Full Answer

Credit reporting agency analysts say that complex mathematics and data analysis are used to determine a bankruptcy risk score. Paying bills on time, keeping debt low and opening as few accounts as necessary are sure fire ways to lower a bankruptcy risk score. Some factors affecting the score are not as easily changed, such as the state that one lives in.

Learn more about Debt Law
Sources:

Related Questions

  • Q:

    Is United Debt Services legitimate?

    A:

    United Debt Services is a registered debt management service provider, which the State of Texas licenses, according to the United Debt Services' website. The Better Business Bureau assigns it a rating of B- as of July 2105, according to the BBB website.

    Full Answer >
    Filed Under:
  • Q:

    What can you do when you are sued by a collection agency?

    A:

    When facing a debt collection lawsuit, respond to the claim whether or not you intend to dispute it, the Consumer Financial Protection Bureau advises. Otherwise, the court may award a default judgement to the debt collector and hold you accountable for the other party's legal fees. Answering the lawsuit forces the debt collector to show evidence of your liability, while ignoring the lawsuit or refusing to accept correspondence doesn't delay the process.

    Full Answer >
    Filed Under:
  • Q:

    What's a good way to respond to a debt collection summons?

    A:

    When served with a debt collection letter, individuals can respond in a few different ways, depending on their particular situation, advises the Consumer Financial Protection Bureau. The response letter should address each claim alleged in the collection letter, and the writer should respond within 30 days of receiving it.

    Full Answer >
    Filed Under:
  • Q:

    How did bankruptcy law change in 2005?

    A:

    The 2005 bankruptcy law change included stricter eligibility requirements, according to FindLaw. The law, called The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, was a major reform of the bankruptcy system. A new means test went into place for filing Chapter 7 bankruptcy, and filers are mandated to show proof of income when filing for Chapter 7 or Chapter 13.

    Full Answer >
    Filed Under:

Explore