The Top 5 Bankruptcy Myths
- Myth: Filing for bankruptcy means you will lose everything.
Fact: Bankruptcy can actually help you preserve important assets.
- Myth: People who file for bankruptcy are financially irresponsible.
Fact: Americans with good intentions are sometimes forced into bankruptcy following long-term unemployment, the high cost of medical bills, and even the cost of running two households after a divorce.
- Myth: Bankruptcy wipes out all past debts.
Fact: Many people file bankruptcy with the hopes of starting fresh afterwards, but several types of debt are not forgotten after bankruptcy. Some include: child support, alimony, student loans, and many more.
- Myth: Bankruptcy permanently ruins your credit.
Fact: After bankruptcy many attorneys recommend getting a secured credit card and making on time payments to build up credit again.
- Myth: If you are married, both you and your spouse have to file for bankruptcy.
Fact: In many cases only one spouse files for bankruptcy.