1.Filing means you are financially irresponsible
Many people think filing bankruptcy is a sign of financial irresponsibility. This simply isn’t true. Many people file bankruptcy because they are facing financial hardships outside of their control.
2.Everyone will know you filed
While bankruptcies are public information, the records are not easily attainable. To obtain bankruptcy documents someone would first have to know where to look. Then you would also have to go through a password protected site. Bankruptcies are no longer commonly published in newspapers, so it is unlikely someone would find out.
3.Your credit will be ruined forever
After filing bankruptcy your debt is discharged, which helps improve your credit score. Most people can see improvement within a year.
4.You will lose all of your property
This simple isn’t true. The vast majority of people who file in Minnesota lose no assets when they file. The vast majority of people get to keep their home and car.
5.You can’t get a mortgage
You will be able to purchase a home after filing bankruptcy, but there is a waiting period. After a chapter 7 you would be eligible for a mortgage after two years.
6.You will face discrimination/lose your job
There are laws that protect you from discrimination. It is illegal for any public entity to discriminate against you because you have filed a bankruptcy. Further, your employer can’t fire you simply because you have filed a bankruptcy.
7.You can only file once
If you have filed bankruptcy before, you are not prohibited from filing again. Life happens, you may need to file bankruptcy again. But, there are waiting periods which depend on the type of bankruptcy previously filed.
8.You can only file if you have a lot of debt
There is no minimum amount of debt required to file a bankruptcy. If you are facing an amount of debt that feels unmanageable or is causing you stress, speak to a bankruptcy attorney.
9.You will never obtain credit again
After filing a bankruptcy your debt is wiped out. This makes it easier to obtain credit. You should be able to get an auto loan or a credit card without too much difficulty after filing.
10.Filing bankruptcy is a lengthy and complicated process
Filing bankruptcy may seem intimidating. But hiring a bankruptcy attorney will make the process easier. An experienced attorney will guide you through every step.
Don’t let these common myths deter you from getting relief. If you are dealing with an overwhelming debt problem, it is important to discuss your options with a bankruptcy attorney. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!