By: Jeff Curl, San Francisco Bankruptcy Attorney

One of my favorite parts of practicing bankruptcy law is the first meeting with a new client. You never know who is going to make an appointment, and why they are coming in the door.

While everyone is unique, I have observed common traits shared by many clients. One such characteristic is the client that tells me he or she had, or still does possess, a really good credit score. Some clients even bring me a printout of their FICO score to prove the high number. While this is partially an expression of frustration and guilt for not repaying everything borrowed, usually the underlying theme is the client feels judged. I get it, I’m not tone deaf. Your credit score is an analytic that is supposed to tell everyone how responsible and reliable you are.

Yes, your credit score matters to the extent you want to obtain credit from a lender in the future or if your landlord or potential employer wants to run your score. People regularly borrow more or drain their hard-earned retirement accounts to preserve their score because they feel so socially vested in this number. But I can say with certainty after meeting with hundreds of clients that what is reported on Equifax, Experian and Transunion and translated into a score is rendered pointless by the harsh reality of our economy. When clients are facing job loss, divorce, a tumultuous housing market, insane credit card interest rates or fewer customers in their store, there is a point where you must a decision to either protect yourself, your family and your business or protect your credit score. What matters most to you?

Photo courtesty of Luigi Diamanti.