Myth #1: Filing for bankruptcy means that you must give up your possessions.
There are lots of horror stories on the Internet about people who filed for bankruptcy and lost their possessions, but the truth is less exciting. Most people who file for bankruptcy do not have to give up their possessions unless they want to. They keep their homes, cars and personal items. These can normally be exempted from bankruptcy under the law. If you are considering bankruptcy and are worried about keeping your property, talking with your lawyer can help put your mind at ease.
Myth #2: You only get once chance to file bankruptcy. If you forget to include a debt, you lose your chance to add it.
If you are considering bankruptcy, chances are that you have needed to ignore bills and creditor's calls for quite some time. You might not know exactly how much you owe or to whom, and you might be putting off bankruptcy because you are worried about forgetting something important.
Many people do this — they worry that they only get one chance to file bankruptcy and that, if they forget to include a debt, they lose their chance to add it. However, this is not true. If you forget to add a debt to your bankruptcy petition, your lawyer can amend the petition later. The law lets people, with the help of their lawyers, amend the documents they file, so any bills that may be forgotten can be added.
Myth #4: Bankruptcy irreparably destroys your credit.
Bankruptcy will impact your credit score, but the truth is that credit can be rebuilt after bankruptcy, and a bankruptcy filing only stays on your credit record for a set period of time. Most credit scores can be rebuilt fairly quickly. Many people begin receiving credit card offers almost immediately.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.