We know that the decision to file for bankruptcy is a difficult one. You should have all the facts. Despite all the information out there about bankruptcy, many myths persist. Today we want to bust some of those myths.
Myth: My credit will be destroyed for 10 years after filing for bankruptcy.
First things first, credit is never destroyed, it can be damaged, which means it can be fixed, it just takes time. Bankruptcies do report on your credit report for 10 years after discharge, but the credit healing process begins almost right away. It does not happen overnight however. If you stay current on your bills and keep your credit report accurate, you may see an improvement in your credit score in as little as two years.
Myth: Spouses need to file bankruptcy together.
Depending on the circumstance and what is best for your particular situation, you can file jointly for bankruptcy or file individually.
Myth: Overspending is why most people go bankrupt.
In many cases, bankruptcy is caused by overwhelming medical bills, a job loss, small business failure, helping out family members, or divorce. They are things that can happen to anyone at any time and sometimes bankruptcy is the only way to move on.
Myth: All debts are discharged in a bankruptcy filing.
Certain debts, such as child support, student loans, and taxes, are not dischargeable.
Myth: Filing for bankruptcy can cost me my job.
Employers can check an employee’s (or potential employee’s) credit report only with the employee’s written permission. A statute under the bankruptcy code prohibits discrimination against an individual who is filing or has filed for bankruptcy.
Myth: If I file for bankruptcy, I will lose everything I have.
In most cases, after filing for bankruptcy, you can still keep your home, car, and most of your personal possessions. Filing for bankruptcy protects those assets while at the same time removing or reducing debt.
Every situation is different. For a in depth look at your situation you should contact a full service debt relief law firm like Harold Shepley & Associates that can answer any questions you may have about debt relief and bankruptcy. Contact us today at 1-866-284-7062 or visit us at www.shepleylaw.com to find out more information on your debt relief options.
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