This Atlanta bankruptcy attorney knows that there are a lot of myths surrounding bankruptcy. Most of the time, it is because the people who have been through it were not thinking clearly at the time. They were stressed, overwhelmed and scared so they don’t remember things correctly or forget parts of the process altogether. Other times it is like the fisherman describing the one that got away. People describe their filing as being the worst most grueling ordeal ever and unfortunately, people new to bankruptcy believe the horror stories.
There are countless bankruptcy myths that we could spend time debunking but below I will focus on the 4 most prominent.
- After bankruptcy I will never have good credit again! This one is just plain silly. One of the main reasons to go through bankruptcy is to repair your credit and move on with your life. Granted, a bankruptcy will stay on your report for a while but it will eventually drop off and it won’t prevent companies from offering you credit. They may not be the best rates or offers but in time you will get your credit back where you want it to be.
- If one part of a married couple files for bankruptcy they both have to. This myth has a small kernel of truth. You do not have to file for bankruptcy if your wife or husband does. Everyone is responsible for their own debts. However, if you are married then you are much more likely to have incurred debts together that you are jointly liable for. In these cases it does make more sense for you both to file at the same time because you share the same debts.
- Everyone will find out that I filed and I will be embarrassed! First of all, you should never be embarrassed for trying to improve your lot in life. Filing for bankruptcy does go onto public record but at the moment, you are in good company. There are a torrent of bankruptcy filings moving through the system and you will just be one of the many so unless you are in the public eye already, no one will take the time to search through it all to find yours.
- If I file, I will lose everything! This is the worst myth of the bunch because it prevents a lot of people from getting help through bankruptcy. Some believe that they will be left homeless and penniless but bankruptcy has a lot of exemptions covering what can and cannot be taken. It varies from case to case but with a great bankruptcy attorney on your side you could be allowed to keep your residence, automobile, clothes, household goods and retirement plan.