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Hawaii_Jake's avatar

How does an old bankruptcy affect future loan applications?

Asked by Hawaii_Jake (31591points) May 29th, 2019

In my days of unrecovered mental illness, I could not work, nor could I pay my bills. I took refuge by filing bankruptcy 15 years ago. Since then, I have rebuilt my credit and now have an excellent rating. I have obtained 2 personal loans without incident. They didn’t even ask about past bankruptcies on the applications.

I am wondering about future loan applications and specifically a home loan. Will they ask about bankruptcy, and will one that old have any bearing?

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4 Answers

elbanditoroso's avatar

It’s not supposed to. They are supposed to be wiped from your report ten years after being settled. So you should be just fine.

They won’t ask for info about bankruptcy – it’s illegal to do so. And your credit file won’t show it. And even if somehow it did show up (credit companies have been known to make errors) – you have 15 years of successful money handling since then.

If nothing else, you should get a copy of your report and go over it in detail just to be positive.

Inspired_2write's avatar

Exactly, after seven years it was wiped off my credit rating report etc And I secured credit cards easy.
As explained to me then Banks and Loans companies realize that people make fininancail mistakes and shouldn’t be blacklisted but forgiven.

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