Hard financial times can hit anyone. In Florida, many people find themselves so buried in debt that they file for bankruptcy. While bankruptcy can address problems with creditors, there are complex legal requirements filers must follow. The bankruptcy court may set specific terms of adherence, and the bankruptcy filing does appear on one’s credit history. Therefore, you may be wondering, can someone get a loan after coming out of bankruptcy?

The answer depends on several factors, and each case has its differences. Lenders do look at each application individually. In general, however, there are no lifetime prohibitions against loan approvals for people in bankruptcy. Some factors will impact determination based on timing and overall credit score.

After someone files Chapter 7 bankruptcy, an indication goes on a credit score. When a lender pulls a loan applicant’s credit history and sees the bankruptcy, the odds of him or her getting approved may be low. Bankruptcy does drive down credit scores, and this affects approvals, interest rates and more. Furthermore, bankruptcies remain on a person’s credit report for 10 years before falling off.

Be aware that even if debts are discharged from Chapter 7, the bankruptcy notation remains. Again, 10 years must pass before the bankruptcy indicator goes away, and a credit score has the chance to rebound.

Also, bankruptcy is only one factor that affects one’s credit score. If someone comes out of bankruptcy but has other things harming his or her score, then loan approvals may prove elusive. So taking steps to achieve one’s overall credit repair may be a good idea.

One step people take to improve their credit score involves taking out a secured credit card, using it for small purchases and making payments on time. Avoiding credit scams helps for obvious reasons. A borrower needs to be alert for dubious and sometimes illegal offers of assistance.

It might also be helpful to work with an attorney when filing for Chapter 7 bankruptcy. The process can prove complicated, so retaining a lawyer for representation and counsel could prove beneficial.