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Declarations of bankruptcy have major impacts on your ability to receive loans or lines of credit of any kind. The basic gist is that by filing for bankruptcy protection in federal court, individuals can restructure or relieve themselves of debts and liabilities. The most common type of bankruptcy for an individual seems to be "Chapter 7 No Asset" which most types of the borrower's debts. A borrower cannot usually qualify for an loan for a period of two years after the bankruptcy has been discharged and must re-establish an ability to repay debt.