There are a lot of “bankruptcy myths” out there. Most of the myths that are criticisms are just NOT TRUE. They started with how it “used to be” or by creditors trying to stop people from getting the help they deserve. Below is a list of some of the most common myths:
1. You Will Never Get Credit Again
NOT TRUE!
You are MORE likely to get credit after you file, than if you don’t file. Actually, filing bankruptcy is often the BEST thing you can do for your credit score.
This is for a number of reasons.
1. Filing bankruptcy gets rid of debts you can’t afford.
2. Filing bankruptcy puts you in a better position to handle more credit.
3. It lets you get back to paying the rest of your debts on time. If you don’t get back to paying your bills on time, you will never have a high Credit Score.
4. Having less debt to pay after a bankruptcy makes you look more attractive to banks, credit card companies and other lenders.
2. Only Deadbeats File For Bankruptcy
NOT TRUE!
Most of the people who file bankruptcy are good, honest, hard-working people, just like you and me, who file as a last resort after months or years of struggling to pay the bills. Your bills probably arose or became unmanageable due to the loss of a partner’s income, medical issues, job loss, or some factor beyond your control, some factor you did not desire.
Filing bankruptcy is actually one of the most positive, responsible, honorable and noble steps you can take on behalf of your family and your family’s future and happiness.
The Bankruptcy Law’s foundation is set out in the original United States Constitution (not even an amendment). Back then, it was an attempt to break away from the “debtor’s prison” idea in England. The United States led the way in allowing for a “fresh start.” Many other countries have now followed our example.
3. Everyone Will Know You Have Filed For Bankruptcy.
NOT TRUE!
Unless you’re famous, chances are very good that the only people who will know about a filing are your creditors and the people you choose to tell. Although bankruptcy is a matter of public record, the number of filings is so massive that unless someone is specifically trying to track down information on you, there is almost no likelihood that anyone will even know you filed.
4. You Will Never Be Able To Own Anything Again.
NOT TRUE!
This is completely false. There are no laws prohibiting you from buying homes, cars, trucks, equipment, household goods, etc. Once you get what is called your ‘discharge in bankruptcy’.
5. Filing Bankruptcy Means You’re a Bad Person.
NOT TRUE!
Filing bankruptcy means you’re doing the legal, legitimate action of a responsible person. Everyone wants to pay their bills.
And everyone wants to take care of their family and provide their family with all the things they need.
6. You Can Only File Once For Bankruptcy Protection.
NOT TRUE!
You can file and get a discharge under Chapter 7 once every 8 years. Unfortunately, life tends to throw “curve balls” at us all every so often. Therefore, it is not only a once-in-a-lifetime opportunity. I’ve filed numerous cases for people their second time, and quite a few where it was their third time with me.
For over 35 years, listening to clients and putting them at ease, while finding solutions and helping achieve future goals, in Marion County, Lake County. Citrus County, Sumter County, and The Villages.
