Does an old bankruptcy matter more than a recent one?

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.

I’ve actually had the opposite experience a couple times. One smaller lender let a seven-year-old bankruptcy slide, while a big bank wouldn’t even look at me. I get what you’re saying about “luck of the draw,” though—sometimes it really does feel random.

I hear you, but I’ve actually found smaller lenders to be a bit more unpredictable. Had one local bank grill me over a five-year-old bankruptcy, while a national chain just wanted to see steady income and a clean couple of years. Maybe it’s just the underwriter’s mood that day... but I never count on leniency, no matter the size of the lender.

I’ve run into the same thing, actually. One time, a credit union flagged my seven-year-old bankruptcy like it was yesterday, even though my credit score had bounced back. Meanwhile, a big-name lender barely blinked as long as my recent payment history looked good. Here’s what I’ve noticed: 1) Some underwriters follow the book to the letter, 2) others look for patterns in your recovery, and 3) a few just seem to go with their gut. It’s wild how much it can vary, even with the same info on your file.

It’s interesting how you mentioned,

“Some underwriters follow the book to the letter, others look for patterns in your recovery, and a few just seem to go with their gut.”

I’ve found some lenders weigh those differently, even if both are old.

Honestly, I haven’t seen a huge difference between old Chapter 7s and 13s in the last few years. Some lenders act like “old is old” and just want to see clean credit since. Others nitpick—especially with 13s, since they’re repayment plans. But it’s not as black and white as folks make it out to be. Sometimes it’s just about the underwriter’s mood that day, weirdly enough.