Get the Facts about Bankruptcy

Five Myths about are the facts.

1. Myth: I cannot file bankruptcy because I make too much money.

Fact: There are guidelines for income, which determine which Chapter of Bankruptcy you qualify to file under, but your income does not prohibit you from filing for bankruptcy relief.

2. Myth: Bankruptcy will destroy my credit score.

Fact: Your credit will be affected, similar to late payments, unpaid debts, and charge offs, affect your credit score, but filing puts a stop to the reporting of bad credit. It allows you to begin to rebuild your credit.

3. Myth: I will lose my home and car if I go bankrupt.

Fact: Most individuals keep their home and car. There are state exemptions to allow you to keep your home and car, provided that you are current on the note payments or are able to become current under a reorganization of your debts.

4. Myth: I will get rid of all of my debts.

Fact: Although many debts are eliminated, some are not. Taxes, school loans, support/maintenance obligations, etc., cannot be eliminated with bankruptcy. Many debts that are unsecured can be eliminated or reduced significantly with bankruptcy.

5. Myth: I cannot file bankruptcy again, since I have already filed once, twice, three times before.

Fact: There are rules about the frequency at which you can file again. You may be able to file provided that you meet these restrictions.