Don't let these bankruptcy myths keep you from filing

On Behalf of | Nov 12, 2018 | Bankruptcy |

Are you considering filing for bankruptcy, but something is holding your back? Are you worried that there are consequences to bankruptcy that will end up hurting you more than helping? The good news is that your worries are probably based on old myths and hearsay that are most likely untrue. The fact is, bankruptcy can provide benefits that can soon lead you on the road to financial recovery.

Do not let these myths keep you from finding debt relief.

My credit will be destroyed for up to 10 years

While your credit score will take a hit after you file for bankruptcy, there are ways to raise that score almost immediately. While bankruptcy will show up on your report for at least 7 years, having a good credit score is the most important thing to establishing new credit with reasonable interest rates.

I can forget about getting a mortgage for a home

When you begin working on your credit immediately after your bankruptcy, you may find that you can secure a mortgage in as little as two years with satisfactory terms. You may even be able to find a mortgage through a FHA loan that has more lenient credit restrictions than regular bank mortgage loans.

Bankruptcy is stealing and people will think less of me

This is not the case. More than one million people every year file for bankruptcy to help them through a distressing financial situation. There is no need to associate guilt or shame with bankruptcy. Bankruptcy should be viewed as a fresh start and a positive step forward.

I can't file bankruptcy for myself if I am married

Bankruptcy laws allow both individuals and couples to file for bankruptcy. If married, your spouse can choose to stay out of your bankruptcy. This usually happens with newly married couples where one person is struggling with debt and the other is not.

I will not qualify for bankruptcy because of the means test

The means test is a way to identify people who have the ability to pay for unsecured debt. Creditors have used the means test argument in hopes of keeping people from filing for bankruptcy. However, since the means test was enacted as part of the bankruptcy process in 2005, filings have continued to rise, and more and more people are finding relief through bankruptcy.

There is no reason to let myths and misguided reasoning keep you from filing for bankruptcy. If you have questions about how bankruptcy will affect you, contact an individual experienced with bankruptcy who can explain what you can expect.

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