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Myth #1: You will never get credit again if you file for bankruptcy.
False. Although a bankruptcy can stay on your credit report for up 10 years from the date of filing, you can start rebuilding your credit as soon as your bankruptcy is closed and discharged. Many people who file for bankruptcy purchase new homes, vehicles, and even qualify for credit cards a few months after the bankruptcy is discharged. In fact, many creditors will start offering credit right after the discharge. With proper planning and counseling, you can get new credit much sooner than you think.

Myth #2: You can only file for bankruptcy one time.
False. While the bankruptcy laws were tightened in 2005, you are still permitted to file for bankruptcy more than once, depending on when you filed and the type of bankruptcy.

Myth #3: Bankruptcy will destroy your credit score.
False. While your credit rating will be affected when you file, it will not be destroyed forever. Depending on your situation and level of debts, you may actually increase your credit score by filing for bankruptcy. Bankruptcy helps eliminate the negative consequences of your unpaid debts, whether you file under Chapter 7 or Chapter 13. Ten years after filing, the bankruptcy will also be removed from your credit report, revealing a clean slate.

The end of your bankruptcy proceedings can provide you with a fresh start. The court order will end your responsibility for dischargeable debts. Although filing for bankruptcy can be a very difficult decision in your life, the absence of all of the financial distress will ultimately help you and your financial life moving forward.

If you or someone you love is seeking debt relief and has questions about bankruptcy, contact us today to arrange a free confidential consultation with bankruptcy attorney Scott F. Humble. Let his 30+ years of experience work for you.

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