#1 – If I file bankruptcy, it means I’m a failure at life.
NO WAY. The vast majority of bankruptcy filings result from unpredictable life circumstances like losing a job, getting sick or injured, or divorcing. Bankruptcy is built into our nation’s law to protect you from having your life ruined by debts you can’t pay.
#2 – If I file bankruptcy, I won’t get credit for at least ten years.
WRONG. You’ll start receiving credit card, and car loan offers during a Chapter 7 bankruptcy. I advise clients to obtain a new credit card once they receive their discharge order. You can also borrow money in the middle of a Chapter 13 case, and I have helped countless people purchase cars, even houses, in the middle of Chapter 13 bankruptcy.
#3 – I want to file, but my spouse doesn’t. Therefore, I can’t.
FALSE. You can file individually or together as a married couple. Your spouse does not need to file with you. It’s not required.
#4 – If I file bankruptcy, I’ll lose everything I own!
INCORRECT. Over 99% of Chapter 7 bankruptcy cases filed by individuals are classified as “no asset” cases, in which the debtor ends up keeping everything they own. You can even keep $1.5 million in an IRA and file bankruptcy.
The Bottom Line
There is a lot of false information on the internet. Call an experienced bankruptcy attorney with your questions. It’s free to chat with me about your options – you can call or text me at 215.551.7109.