Does an old bankruptcy matter more than a recent one?

- Noticed the same thing—big banks seem to have a checklist and if you don’t tick every box, it’s a no-go.
- Credit unions and smaller lenders? Way more flexible in my experience. They actually looked at my current income and savings instead of just the ancient bankruptcy.
- Still, some local places can be weirdly strict too... maybe depends on who’s reviewing your file that day?
- Honestly, I wish there was a “statute of limitations” for financial mistakes—ten years feels like forever in money years.

Title: Does an old bankruptcy matter more than a recent one?

I’ve run into the same thing with banks just running through their little checklist—almost like they’re not even looking at you as a person. Last time I went mortgage shopping, I’d been out of bankruptcy for nearly nine years, had a solid job, steady savings, and zero late payments since. Still, the big-name banks acted like I’d robbed a bank or something. They kept circling back to that old bankruptcy like it was yesterday.

Credit unions were a totally different story. One actually sat down with me and asked about my current situation—didn’t seem nearly as hung up on what happened almost a decade ago. They even mentioned that they see people bounce back all the time, so they’re more interested in patterns than single events. That felt way more human.

But you’re right, some smaller lenders can be strict too, which honestly surprised me. One local place nitpicked my credit report for an old medical bill that was paid off years ago. Made me wonder if it’s just luck of the draw with who’s reviewing your file that day... maybe some folks are just more risk-averse than others.

The “statute of limitations” idea makes so much sense—ten years is basically two lifetimes in terms of finances. People change jobs, move cities, raise families... but that old mistake follows you around forever. It’s frustrating how the system seems to assume people can’t change or recover.

One thing I did notice: some lenders put more weight on how recent the bankruptcy was, while others care more about your track record since then. If you can show stability post-bankruptcy—consistent income, no new delinquencies—they’ll sometimes look past it (especially after 7+ years). But there’s no real consistency, which is maddening when you’re trying to plan your future.

Feels like half the battle is just finding someone willing to look at the whole picture instead of just ticking boxes on a form...

- Seen this play out with clients a bunch of times—one lender treats a 9-year-old bankruptcy like it’s ancient history, another acts like it happened last week.
- Had a buyer last year who got denied by two big banks, but a local credit union barely blinked at his old bankruptcy. They cared way more about his recent pay stubs and rental history.
- Honestly, it’s wild how much depends on the underwriter’s mood or the lender’s risk appetite that day. Sometimes feels like there’s no rhyme or reason.
- I always tell folks: don’t get discouraged by one “no.” There’s usually someone out there willing to look at the bigger picture... even if you have to knock on a few doors.

I’ve run into this too, and it never fails to surprise me how inconsistent lenders can be. Had a project a couple years back where one of my buyers had a bankruptcy from almost a decade ago—one bank flat-out refused, but another barely mentioned it and just wanted to see proof of steady income. Makes you wonder if some underwriters just have a stricter playbook, or if it’s more about their gut feeling that day. Ever notice how smaller lenders seem more willing to look past old stuff if everything else checks out?

Honestly, I’m not sure I buy that smaller lenders are always more flexible. Sometimes they’re just as rigid, if not more, because they can’t afford the risk. I’ve had deals where a local credit union was way stricter than a big national bank.

“Ever notice how smaller lenders seem more willing to look past old stuff if everything else checks out?”