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How Long Will It Take To Become Financially Solvent After Bankruptcy
The decision to file for bankruptcy is a difficult one that has ramifications into the future far after the filing is complete. For those considering filing or those in the process of filing, finding out how long it will take to become solvent again after the filing is complete is important.
Every Situation Is Different
A bankruptcy, regardless of what type, will stay on your credit report for at least five to seven years, and it will stay in your legal records for at least 20 years. This does not mean that once the bankruptcy falls off your credit report, you are magically solvent again, or once it disappears from your legal record, everything is in worry-free. Getting back on your feet after a bankruptcy takes hard work and time, usually more time than it takes for the filing to fall off your credit report.
What it Takes To Get Back On Your Feet
Often, the hardest part of declaring bankruptcy is the aftermath. One of the largest reasons for this is because you have to learn how to manage your money in a way that will not lead to another bankruptcy and without depending on credit cards. People picking up the pieces after a bankruptcy will not be able to qualify for a car loan or credit card, a mortgage or even a cell phone contract or some rental agreements. The road to solvency requires you to be able to manage your finances on a cash basis, and often times, it requires additional income, usually in the form of a second job, to get ahead.
It takes patience, diligence, and hard work to get your financial life back together and get solvent after a bankruptcy. Learning new habits, staying on track, and having the fortitude to stick it out for ten years if that is what it takes are all very difficult tasks. However, if you make the right choices after a bankruptcy, you will be rewarded with a new financial life that includes being able to pay your bills on time and avoid another bankruptcy.