TOP 4 MYTHS ABOUT BANKRUPTCY

 

There is a lot of false information on the internet about bankruptcy. The truth is that creditors have plenty of motivation to keep you scared of filing or confused into paralysis.  Here are the top 4 myths about bankruptcy that simply aren’t true.

#1 – If I file bankruptcy, it means I’m a failure at life.

NO WAY. The vast majority of bankruptcy filings result from unpredictable life circumstances like losing a job, getting sick or injured, or divorcing.  Bankruptcy is built into our nation’s law to protect you from having your life ruined by debts you can’t pay.

#2 – If I file bankruptcy, I won’t get credit for at least ten years.

WRONG. You’ll start receiving credit card, and car loan offers during a Chapter 7 bankruptcy. I advise clients to obtain a new credit card once they receive their discharge order. You can also borrow money in the middle of a Chapter 13 case, and I have helped countless people purchase cars, even houses, in the middle of Chapter 13 bankruptcy.

#3 – I want to file, but my spouse doesn’t. Therefore, I can’t.

FALSE. You can file individually or together as a married couple. Your spouse does not need to file with you. It’s not required.

#4 – If I file bankruptcy, I’ll lose everything I own!

INCORRECT. Over 99% of Chapter 7 bankruptcy cases filed by individuals are classified as “no asset” cases, in which the debtor ends up keeping everything they own. You can even keep $1.5 million in an IRA and file bankruptcy.

The Bottom Line

There is a lot of false information on the internet. Call an experienced bankruptcy attorney with your questions. It’s free to chat with me about your options – you can call or text me at 215.551.7109.