Bankruptcy Risk Rating has been around for almost twenty years and is used by credit reporting agencies to rate consumers for lenders.
The bankruptcy scores could enable lenders potentially to lower their bad-debt reserves because they can more accurately assess and hence narrow potential risk. - Karen Gross, director of the New York Law School Economic Literacy Coalition
You’ve heard of Credit Bureau ratings like R2 and R9. You may even have heard of FICO® scores. Now there is another one you should know about; Bankruptcy Risk Rating. Bankruptcy Risk Rating has been around for almost twenty years and is used by credit reporting agencies to rate consumers for lenders. We seldom hear about this rating system because the credit bureaus do not advertise its existence. This may all change as Experian in the US is considering making its score available to consumers.
For more information please refer to: Seattle Times article; The News Station.
You can also look at the Bankruptcy Canada Bankruptcy Predictor.
April 15th, 2006 at 9:52 am
and here’s how the bankruptcy risk scores work:
“The only difference between credit score and bankruptcy risk score is the ranking numbers. In credit scores, the higher the #, the better the score (maximum of 850). However in a bankruptcy risk score, the lower the #, the better the score (-100 or so and upto 2000). Therefore, 2000 means the consumer has a very HIGH chance of declaring bankruptcy, while -100 means very low chance of declaring bankruptcy.”
Source: http://www.moneysavingfreetips.com/bankruptcy-risk-score.html