Bankruptcy often carries a negative stigma, but much of what you hear is based on misconceptions. By separating myths from facts, bankruptcy becomes a less daunting option for financial relief. Here are some common myths and the truths behind them:

1. Myth: I can max out my credit cards before filing for bankruptcy and not pay for what I bought.
   • Fact: Incurring debt in anticipation of bankruptcy is considered fraud. This debt won’t be discharged, and your case could be dismissed, leading to potential federal charges.
2. Myth: I only need to list creditors I don’t want to repay in my bankruptcy filing.
   • Fact: All creditors must be listed, even if you intend to repay them. Post-discharge, you can choose to repay any creditor voluntarily.
3. Myth: I’ll never get credit again after filing for bankruptcy.
   • Fact: Bankruptcy isn’t permanent on your credit report. You can rebuild credit by paying bills on time. New credit offers and loans will become available over time.
4. Myth: If I’m married, my spouse and I must file for bankruptcy together.
   • Fact: Only one spouse must file if the debt is in their name alone. Joint debts may require both to file to avoid creditors pursuing the non-filing spouse.
5. Myth: Everyone will know I’ve filed for bankruptcy.
   • Fact: Bankruptcy is public, but unless you’re famous, it’s unlikely to be widely known beyond your creditors.
6. Myth: I’ll lose everything if I file for bankruptcy.
   • Fact: State and federal exemptions protect assets like homes, cars, and retirement accounts. Many people file bankruptcy without losing their assets.
7. Myth: All debt is discharged in Chapter 7 bankruptcy.
   • Fact: Some debts, like child support, student loans, and certain taxes, aren’t typically discharged.
8. Myth: Only deadbeats file for bankruptcy.
   • Fact: Bankruptcy is often caused by uncontrollable circumstances, such as layoffs or medical issues. Many filers are responsible individuals seeking a fresh start.
9. Myth: You can only file for bankruptcy once.
   • Fact: Multiple filings are possible, though they may affect credit reestablishment. Eligibility depends on previous filings and discharge status.
10. Myth: Filing for bankruptcy is hard.
    • Fact: While complex, experienced attorneys make the process manageable. At Walden Legal Solutions, we guide you through every step.

Empower Yourself with Knowledge

Understanding the realities of bankruptcy can empower you to make informed decisions. If you’re considering bankruptcy or want more information, contact Walden Legal Solutions today for expert advice and support.