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7 Bankruptcy Myths Exposed
Myths are widely believed falsehoods. When facing bankruptcy, you’ll likely hear myths from well-meaning friends and family. They might say things like, “You’ll never get another loan and kiss your house goodbye.” Because there are different types of bankruptcy and every case is different, blanket statements like these are myths. This is why it is so important to only take advice from an expert. Call your local bankruptcy attorneys at Whitten & Whitten to learn what bankruptcy can look like for your unique situation.
7 common myths about bankruptcy below:
- You have to pay everything back. This is not universally true. Depending on which bankruptcy you declare, you might not have to pay anything back at all. Your lawyers can help you decide what bankruptcy suits your situation the best.
- Married couples must file together: The only person that needs to file is the one who is liable for the debt. Often times, large debts are only in one person’s name. Of course, if both partners are responsible for large debts, they should both file for bankruptcy.
- Your credit will never recover: This is not true. Yes, bankruptcy remains on your credit report for the seven to 10 years, which will limit your access to new lines of credit. However, your scores will recover with good spending habits and time. Check out our blog all about credit ratings and bankruptcy by clicking here.
- Bankruptcy discharges every debt to your name. While bankruptcy gives you freedom from most of your debts and allows you to get back on your feet, it doesn’t remove all debt. Some debts that aren’t discharged with bankruptcy are student loans, taxes, and child support.
- You’ll lose everything. Many people worry that they will lose everything, like their homes, cars, furniture and precious heirlooms. This is why consulting with an experienced lawyer is so important. Depending on several factors, including equity and what kind of bankruptcy you file, you might get to keep all of your possessions. You do have options!
- If you filed for bankruptcy in the past, you can’t do it again. If you find yourself in need of bankruptcy again, you might think that you aren’t eligible. This is untrue. You are able to file for Chapter 7 after eight years and as soon as your Chapter 13 reorganization ends, you should be able to file a new one.
- Filing for bankruptcy means you’ve failed at being an honorable, responsible adult. This is so very far from the truth! Many people feel that they failed and can never recover after declaring bankruptcy. On the contrary, filing bankruptcy is a step towards a solid future. It is a responsible, noble act to get the help you need.