Common Misunderstandings About Bankruptcy

Three common misunderstandings about bankruptcy:

Misunderstanding #1: Everyone Will Know I Filed For Bankruptcy

• Although bankruptcy is a matter of “public record,” the truth is that aside from your creditors, there is very little chance that anyone will know – unless you tell them. The only bankruptcies that are published in local newspapers anymore are business bankruptcies. The social stigma that may have been associated with a bankruptcy in the past is no longer what it once was. Credit cards, taxes, health issues and illness, as well as unemployment, are all prevalent issues today that affect many peoples’ lives.

Misunderstanding #2: I’ll Never Be Able To Get A Credit Card or Mortgage Again

• The fact is that once your bankruptcy is discharged you will have a starting point to rebuild your credit. You will no longer have your creditors reporting negative accounts to your credit report. The truth is that you’ll receive credit card offers shortly after you file for bankruptcy. Although they’ll be low-limit, high interest credit cards initially, applying for those cards and charging things and paying them off will help rebuild your credit quite quickly. In about a year, you’ll be eligible for a new card loan. In approximately two to three years, you’ll be eligible for a new home mortgage loan – most likely with standard terms.

Misunderstanding #3: They’ll take my house and my car

• We understand that, in most cases, a person's home and vehicle are their most needed assets. It is our goal to work with you to assure that these items are protected. That is why it is so important that you have an experienced bankruptcy attorney representing you.