Although you can get a loan one day out of Bankruptcy you will have to have some open trade lines that show your ability to pay debt on time for a certain period of time.

After filling a bankruptcy it is important to re-establish good credit as quickly as possible. One of the ways you can start to improve your status after the discharge is to check with the 3 credit repositories and be sure the accounts you included are showing the correct status of included in bankruptcy vs just delinquencies, collections and charge-offs.

In some cases as a property owner you may be able to refinance as an alternative to filing for bankruptcy. If you have sufficient equity you may qualify for a home equity loan or cash out refinance of your primary mortgage. The money you receive from refinancing can be used to pay off debts to avoid filing for bankruptcy. If you are considering bankruptcy you should consult a lawyer as well as a mortgage broker to discuss which option is best for you.

The main two types of bankruptcy for indiviuals to file are chapter 7 which will erase all debt included in the bankruptcy. second there is chapter 13 this will restructure the debt and give the person a certain payment and time period to repay the debt.

Chapter 7 - Gets rid of all debts except some taxes and possibly alimony payments. Liquidates all assets that are not exempt (cars, work-related tools and basic household furnishings). Some property may be sold by a court appointed official or turned over to creditors.

Chapter 13 - Allows a borrower with a stable income and limited debt, to pay off bills under a court approved repayment plan over a 36 to 60 month period rather than surrender any property.

If you are having problems getting credit or paying your monthly bills, you may be tempted to turn to businesses that advertise quick and easy solutions to credit problems. But do not be misled. There are no instant solutions. Although some credit counseling businesses "guarantee results or your money back," you may find that there are hidden strings attached or that the company is gone when you want your money back.
There are steps you can take to help solve your credit problems. However, solving them takes time, patience, and some understanding of the law. This brochure may help you. It explains why your credit history is important, how to build a credit history and establish credit, and what can be done to improve a bad credit history. It also suggests ways to help deal with debts you may have, possibly by using a nonprofit Consumer Credit Counseling Service.

On October 17, 2005 the bankruptcy laws underwent a change, the biggest change is that fewer people will qualify for Chapter 7 bankruptcy.

Demonstrate good money habits now. Many people who file bankruptcy swear off credit altogether, however, it is important to re-establish your credit rating. Get a secured credit card or take on some sort of loan — furniture, a car or a major appliance — to demonstrate that you are able to make timely payments. Make sure you are making other payments (utility bills, cell phone, etc.) on time as well. You won't turn things around in a year but your credit score will improve over time.

Bankruptcy, generally in consumer home financing refers to these types Chapter 13 and Chapter 7. A Chapter 13 bankruptcy allows the consumer to schedule a repayment plan of debt, this process of repayment is usually scheduled for a 3-5 year period. The payment process and scheduling is set by the court and managed by the appointed trustee. A Chapter 13 bankrutcy can be paid off through a refinance of an existing mortgage, this is called a bankruptcy buyout. Lending Institutions have strict guidelines in being approved for a loan of this type. A Chapter 7 bankruptcy however can be viewed as consumer debt liquidation. This allows the bankruptcy court to liquidate or sell some of your property for the benefit of the creditors. Generally a Chapter 7 bankruptcy takes about 4 to 6 months from start to finish. Both types are functional for lending institutions and consumers can still qualify for a home loan.

Although bankruptcy can be damaging to your credit, you can technically get a mortgage loan 1 day out of bankruptcy!