Bankruptcy Myths

Bankruptcy Myth # 1: If I file for bankruptcy, I will lose everything I own.

The Truth: Most people get to keep everything and go about their normal life. 

Bankruptcy Myth # 2: If I file for bankruptcy, I won’t be able to get credit for years and years.

The Truth: Most people are able to get credit and rebuild credit fairly soon after going through bankruptcy. 

Bankruptcy Myth # 3: Bankruptcy won’t help me get rid of IRS taxes.

The Truth: Bankruptcy is a great option to discharge back IRS taxes for some people. 

Bankruptcy Myth # 4: Foreclosure is easier and isn’t as “bad” as bankruptcy.

The Truth: Bankruptcy allows most people to keep their house and is no worse to their credit than a foreclosure. 

Bankruptcy Myth # 5: I will lose my job if I file for bankruptcy.

The Truth: Laws are in place that make it illegal to fire an employee or refuse to hire a potential employee because that individual has filed for bankruptcy. 

Bankruptcy Myth # 6: My friends and family will know if I file for bankruptcy.

The Truth: While a bankruptcy filing is a public record, few people check and in most cases your friends and family will have no idea you filed bankruptcy.