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Bankruptcy Myths


  1. Myth: Filing for bankruptcy means you will lose everything.
    Fact: Bankruptcy can actually help you preserve important assets. 
  2. 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.
  3. 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.
  4. 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.
  5. 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.
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