How long will it take to really get back to a secure financial position? Well that depends on quite a few factors so lets go through each one and try and match your situation. Firstly, when you file for bankruptcy (chapter 7 and NOT 13) all you debts get eradicated and you money owed to creditors get taken to zero. It's important to no that not ALL your debts will be completely erased - only those debts to Creditors. You will still have to pay money for things such as: student loans; criminal fines and penalties, forfeitures, taxes, debts arising out of willful misconduct and or malicious misconduct by the debtor, even spousal and child support, liability for injury or death from driving intoxicated, and non-dischargeable debts from a prior bankruptcy. You also need to note that when assets are being sold that there are certain assets that are non-exempt. This includes property such as: A second home - like a holiday home, Family heirlooms, a second car or truck, expensive musical instruments, collections such as stamps and coins, all investments such as cash, stocks, bonds, and bank accounts.
It's interesting to note that you might be able to get a loan shortly after you file for bankruptcy, because of the simple reason that now you've filed for bankruptcy then all your debts are returned to zero. So when you approach creditors they will have a look at your Bankruptcy Credit Report and note that now you have a very low debt. But it's not quite as simple as that you still need to show a solid and steady income stream and you need to have opened a few accounts, maybe some credit cards account and have built up a repayment history - showing that you can pay back creditors and debts. It's quite logical to see that if you start building up multiply bankruptcies then you will find it extremely difficult to get future loans - so don't get into a habit of filing for bankruptcy.
What are the alternatives to filing for bankruptcy? First make sure you visit experts that will look at ways to get out of having to file for bankruptcy - these include Consumer Credit Counselor (CCC), if you prove to your creditors that you are seeking help form these professional they will in most cases stop debt collection actions giving you a temporary reprieve form the pressure of having to make payments that you see no way of making. Look at your debt and work out what expenses you can live without - remember that your accommodation and transport are the most essential items so try and cut other expenses first.
To find out more about Credit Reports be sure to check out www.credit-reporter.net
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