Title: Does an old bankruptcy matter more than a recent one?
At this point, I’m convinced underwriters just spin a wheel and see what pops up.
That’s honestly how it feels sometimes. I had to dig up a W-2 from a job I left in 2011—like, who keeps that stuff handy? The inconsistency with bankruptcy timing is wild too. One lender barely blinked at mine from 8 years ago, but another wanted every detail. Makes you wonder if there’s any rhyme or reason, or if it’s just luck of the draw. Hang in there—it’s not just you.
- It’s wild how much it depends on the lender and even the specific underwriter you get. I’ve had deals where a 10-year-old bankruptcy was treated like ancient history, and others where they wanted a full post-mortem on something from before the last recession.
- From what I’ve seen, most big banks follow the Fannie/Freddie guidelines pretty closely—usually 7 years for Chapter 7, sometimes less for Chapter 13 if you’ve rebuilt your credit. But smaller lenders or portfolio lenders? Total wild card. Some are super conservative, some barely care as long as your recent credit is clean.
- There’s also the “human factor.” I had one underwriter who seemed to take my old bankruptcy personally, like I’d defaulted on their own money. Another just shrugged and said, “Looks like you’ve moved on.” No rhyme or reason.
- It’s not just bankruptcies, either. I once had to explain a $200 overdraft from 2012. Meanwhile, another lender didn’t even ask about my recent late payment. Makes you wonder if they’re just bored and looking for paperwork to chase.
- If you’re running into this a lot, it might help to ask up front what their policy is on old bankruptcies. Some will tell you straight up what they care about, others will be vague until you’re knee-deep in paperwork.
- At the end of the day, it’s mostly about risk tolerance and how much the lender wants your business. Timing does matter—recent bankruptcies are usually a bigger deal—but there’s always that one person who wants to dig through your financial closet for skeletons.
Honestly, I keep a folder labeled “Stuff Lenders Might Randomly Ask For” at this point. Saves a ton of time when they inevitably want a pay stub from 2009 or something equally random...
Funny timing—just had my first “deep dive” with an underwriter and it was exactly as random as you described. They barely blinked at a medical collection from years ago but wanted a written explanation for a $50 missed payment that I’d already paid off. I kept thinking, is there a checklist or do they just pick stuff at random?
I totally agree about the human factor. My friend got approved by one lender who was super chill about her old bankruptcy, but then got denied by another who seemed to treat it like she’d robbed a bank. It’s wild how much difference one person can make.
I’m realizing now that having every single document ready is just part of the process—even if you think it’s ancient history, someone might still want to see it. I’ve started keeping digital copies of everything, just in case. It does feel like you’re prepping for a pop quiz you didn’t study for.
One thing I noticed: some lenders seem way more interested in your recent habits than anything from a decade ago. But there’s always that outlier who wants to know about every financial hiccup since high school...
DOES AN OLD BANKRUPTCY MATTER MORE THAN A RECENT ONE?
It does feel like you’re prepping for a pop quiz you didn’t study for.
That’s the most accurate description I’ve seen yet. My first mortgage application, I felt like I was being tested on obscure trivia about my own life. The underwriter barely mentioned my five-year-old bankruptcy but wanted a signed letter about a $30 overdraft that happened last year. It’s wild how inconsistent it can be.
From what I’ve seen, there really isn’t a universal checklist. Some lenders seem to have their own “pet peeves” when it comes to red flags. I had one who was laser-focused on anything recent—like, if I’d missed a payment in the last six months, it was a huge deal. But another lender basically shrugged off a string of late payments as long as they were over two years old, and only cared about my current job stability.
I do think the human factor is a lot bigger than people realize. One friend of mine had a bankruptcy from eight years ago and got approved for a car loan with zero hassle. Another friend’s bankruptcy was almost ten years old, but her lender wanted a full explanation and proof of “rehabilitation,” whatever that means. It almost felt like the underwriter was having a bad day and decided to make things tougher.
Keeping digital copies of everything has saved me more than once. I used to think, “No one will care about that ancient account,” but then, out of nowhere, someone wants to see a statement from a closed credit card from 2015. It’s exhausting, but at least now I’m prepared for those curveballs.
I guess the only thing that’s consistent is the inconsistency. Some lenders are all about your recent behavior, others want to dig through every skeleton in your financial closet. I wish there was a more predictable standard, but until then, I’m just keeping my paperwork ready and hoping for an underwriter who’s having a good day.
It’s wild how much it depends on the lender and even the specific underwriter you get. I’ve seen folks with a bankruptcy from years ago breeze through, while someone else gets grilled over a single missed payment last year. Lenders do seem to care more about recent stuff, but there’s no hard rule. Has anyone here actually had an old bankruptcy come back to bite them, or is it mostly the recent stuff that trips people up?
