Common Bankruptcy Myths
Many clients have concerns about filing for bankruptcy, and rightfully so – it is a very difficult decision to make because there are a lot of questions to consider. However, there is a lot of misinformation about filing for bankruptcy and the debt relief that it provides. In fact, there is so much misinformation that many people do not even consider filing in the first place.
Many of these concern derive from myths disseminated by the very same creditors that want to prevent you from obtaining bankruptcy debt relief!
The most popular myth is that you will never be able to obtain a credit card or mortgage after filing. This is patently untrue. Most clients are able to get a credit card, often times within less than a year, after obtaining bankruptcy debt relief. Further, most people are able to successfully get a mortgage within 2-3 years after filing for a bankruptcy.
Another common myth is that a creditor has the power to stop you from filing for bankruptcy. This is simply a lie. Some creditors will even suggest that their debts will not be discharged by bankruptcy! This, too, is often times untrue. No creditor has the power to stop you from filing for bankruptcy. It is your legal right. Any creditor that has advised you differently has told you a lie.
A third common myth is that individuals must sell all of their property before being eligible for bankruptcy debt relief. Not only is this untrue, but also perhaps one of the most harmful bankruptcy myths ever told. It truly breaks my heart when I see honest, hardworking people empty their entire life-savings, IRA’s, and other pensions before filing for bankruptcy. Especially because these are the types of accounts that can actually be saved through filing a bankruptcy!
The bottom line is that there are many myths that are designed to deter you from even considering bankruptcy. Thus, in order to determine whether bankruptcy debt relief is right for you, it is important that you speak to a knowledgeable and competent bankruptcy attorney about all of your debt relief options.