If filed chapter 7 bankruptcy and later foreclosure, will my credit score take an additional hit?

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If filed chapter 7 bankruptcy and later foreclosure, will my credit score take an additional hit?

Asked on April 11, 2012 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, your credit would take an additional hit from a foreclosure subsequent to a bankruptcy filing--all negative credit or payment events will hurt your credit rating, not merely the "largest" or most significant (e.g. bankruptcy) event. It is impossible to know exactly what the impact will be--the credit-rating agencies keep their formulas very close to their vests and do not disclose how their calculations are done--but it is widely held that once your credit is already damaged, subsequent defaults or foreclosures do not inflict as much additional damage as they would on an otherwise-good credit rating. So after a bankruptcy, the impact of the foreclosure will likely be less than it would have been in the absence of bankruptcy, but there will be some impact.


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