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.
