Bankruptcy is an area of the law that laymen and professionals avoid. They don’t want to think that they might need its protections one day, and as a result, lies about what it can and can’t do, and what happens in a typical case, gain a foothold in the popular consciousness. This is particularly so since it is to bill collectors’ advantage to continue to spread these lies in the hopes people actually believe them.
Unfortunately, being lies, they’re wrong, and can easily be debunked. In fact, in most cases, they’re so wrong they’re laughable.
This section will talk about 8 of the most common misconceptions about bankruptcy. Each myth has a link–clicking on it will take you to a description of the myth:
Myth # 1: Congress Eliminated Bankruptcy in October of 2005
Myth #2: Everyone Will Know You Filed Bankrutpcy
Myth #3: You Will Lose Everything You Own
Myth #4: You Will Never Get Credit Again
Myth #5: Bankrutpcy Will Destroy Your Credit for 10 Years
Myth #6: Only Deadbeats File for Bankruptcy Protection
Myth #7: You Can Never Get Rid of Back Taxes
Myth #8: You May Never Own Anything Again