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Exposing Common Bankruptcy Myths

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When contemplating whether to file for bankruptcy, many people feel worried or scared because of what they read or heard about bankruptcy. For example, you might have heard or read that you will never obtain credit again if you file for bankruptcy. Such information can scare you and make you forgo this debt relief option.

As much as the internet, your friends and family have information that could benefit you; it is important to keep in mind that some of the things you read or hear about bankruptcy are not accurate. Creditors also promote bankruptcy myths, and, maybe, whatever you heard about bankruptcy that left you worried came from one of your creditors. As much as it can be scary to think about filing for bankruptcy, believing myths about bankruptcy only make the thought more frightening.

There are countless bankruptcy myths, and discussing them all in one article is almost impossible. Nonetheless, below are three of the most common bankruptcy myths.

Bankruptcy Myth #1: Bankruptcy Hurts Credit Permanently

Bankruptcy does not hurt credit permanently. Even though bankruptcy stays on people’s credit reports for up to 10 years, it will not ruin your credit permanently.

Immediately after filing, you can begin rebuilding your credit. You might be shocked by how fast you can improve your credit score and access credit. There are many ways of rebuilding credit such as;

  • avoiding overspending,
  • getting a secured credit card, and
  • paying bills on time.

Bankruptcy Myth #2: Married Couples Must File for Bankruptcy Together

If you are married, your partner does not have to file for bankruptcy just because you are filing.

Bankruptcy laws allow you to file for bankruptcy alone without involving your partner. If you are the only one who owes creditors, meaning the debts are not joint debts, your partner will not need to file. However, if you and your wife or husband have joint debts, it might be a wise idea to file together.

Consult a qualified attorney if you are confused about whether to file alone or with your spouse.

Bankruptcy Myth #3: Bankruptcy Laws Make it Hard To File

Some people believe that bankruptcy laws make it hard for debtors to qualify for bankruptcy. While it is true that you need to meet certain qualifications before you can file for bankruptcy, it is not true that bankruptcy laws make it hard to file. According to the law, if you want to file for Chapter 7 bankruptcy, you need to pass the means test. Nonetheless, even if you fail the test,  you can try the Chapter 13 option. Just because laws control who qualifies for which option does not mean it is hard for debtors to file.

Others feel that the bankruptcy process is too complicated; therefore, it is impossible to successfully file. As much as the bankruptcy process can be complicated, you will not have to deal with the complicated parts when you work with a qualified attorney.

Contact a Southeast Iowa Bankruptcy Attorney Today

Do not let bankruptcy myths prevent you from considering bankruptcy as your debt relief option. If you doubt something you have read or heard about bankruptcy, consult a qualified Southeast Iowa bankruptcy attorney to receive clarification. Contact the Noyes Law Office, P.C., today to schedule a consultation.

Resources:

law.cornell.edu/wex/means_test

uscourts.gov/services-forms/bankruptcy

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