Many people believe that if they file bankruptcy; then they cannot obtain any credit for ten years. Actually, obtaining credit at any time is normally based upon three factors:

  1. Your ability to repay the loan,
  2. The creditor’s collateral position, and
  3. Your credit history.

Filing bankruptcy seriously impacts a person’s credit score. This, however, does not mean that you automatically cannot obtain credit. Individuals that show the creditor that they now have the ability to repay a loan can, in many cases, obtain the credit necessary to purchase a car. Most home loans, such as FHA and VA, provide a waiting period before being eligible to purchase a home. Generally, the credit bureaus are permitted to report a bankruptcy filing for ten years.