Bankruptcy Myths and Facts

It seems as though there is a cloud of shame attached with filing for bankruptcy protection. In today’s brutal economy, it is not
uncommon for every day, capable and hard-working people to petition to file for  bankruptcy in order to move forward with their lives.

It is always advisable to inquire with your bankruptcy attorney what debts will be covered and what debts will remain. There are many myths out there about filing a petition for bankruptcy, however, we will highlight five of them.

Common Bankruptcy Myths

Myth # 1 – I won’t be able to have a credit card for ten years at least. This is false. Many credit card companies release credit cards under certain terms to those who have filed for bankruptcy. A word of caution though; they will be far more stringent than usual. The same goes for getting credit to buy a car or other such necessary needs.

Myth #2 – I will lose everything I own and have to live on the streets. Depending on which state you reside there are provisions put into place to avoid this. Consult your bankruptcy attorney for the exact laws of entitlement.

Myth #3 – Everyone will know I have filed for bankruptcy. There are no published lists of those who have filed for bankruptcy. The only people who will know are those you chose to tell and certain professionals. Your privacy is of great importance and is protected. Although it is filed through the courts there are no lists to consult that are available to the general public.

Myth #4 – If I am filing for bankruptcy anyway, I can load up my credit card just before doing so and not be responsible for the debt.  False. Please consult your lawyer for the many legal reasons that this is not a good idea.

Myth #5 – If my boss finds out, I could be fired. False. There are strict Federal laws in place to protect the petitioner from further stigma and bias.

Taking The Next Step

People will always have their own opinions on the matter but the only way to know the true facts that apply to your own personal situation is to make an appointment with a Bankruptcy Attorney and find out how filing for  bankruptcy protection can help turn your situation around.