Bankruptcies and foreclosures can remain on a credit report for 7 to 10 years. There are lenders, however, who will consider an applicant who went through a bankruptcy as recently as two years ago, as long as good credit has been reestablished.
Depending on when the bankruptcy was discharged and what kind of credit a borrower has reestablished since then, it needn't be an obstacle to obtaining loan approval The longer ago the discharge occurred, the better off a loan applicant will be. Also, depending on the circumstances surrounding the bankruptcy, lenders will lean one way or the other. For example, if a borrower went through a bankruptcy because his or her company had financial difficulties owing to, say, defense industry cutbacks, that says one thing to a lender. If, however, a borrower went through bankruptcy because he or she over extended personal credit lines and lived beyond his or her means, that says quite another thing.