The Most Common Myths About Filing for Bankruptcy That You Should Know

by | Jun 27, 2019 | Lawyers and Law Firms

It is difficult to deal with a financial issue. That is why many people find that it is best for them to file for bankruptcy. However, many people do not want to hire a bankruptcy attorney in Pasco County because of the common myths about it.

Myth: You Will Lose Everything

Fact: It is possible that you will be able to keep all of your possessions if you file for bankruptcy. There are certain assets that are exempt if you file for Chapter 7 bankruptcy. If you have assets that are not covered under exemptions, then your creditors may not want them.

You can also keep your assets if you file for Chapter 13 bankruptcy. However, they will be factored into your repayment plan.

Myth: Bankruptcy Means That You Are a Failure

Fact: Most bankruptcies are filed as the result of a crisis that is not a person’s fault. Medical bills, job loss, and divorce are some of the reasons that bankruptcies are often filed. A small percentage of people file for bankruptcy because they mismanage their money. However, that still does not mean that they are a failure.

Myth: Every Debt Will be Wiped Out

Fact: You may be able to get most out of your debts. However, there are some debts that you will still have to pay despite bankruptcy. This includes things such as child support, taxes, and federal student loans. A bankruptcy attorney in Pasco County can tell you which debts can be discharged.

Myth: You Cannot get Credit Ever Again

Fact: You may start to get credit card offers a few weeks after your bankruptcy is finalized. Lenders will no longer see you as a risk, so they may start sending you offers. However, that does not mean that you should take out a credit card or loan. You do not want to put yourself right back in the same situation.

To get more information about filing for bankruptcy visit

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