Bankruptcy Myths

When I talk to clients I often hear a lot of bankruptcy myths. The most common one is that bankruptcy will ruin my credit. In many cases people who are worried about their credit have not even checked their credit score, and the bankruptcy does not drop the score any lower than it already is. The other common thing I hear is that people know the law changed in 2005 and they think they can no longer file for bankruptcy. This is certainly not the case. Many people have filed since the law changed, you just need to talk to an attorney to determine your eligibility. The next most common myth is that you will lose your home or car in bankruptcy. In most cases you can exempt your vehicle or home and keep it after the bankruptcy. You should talk to an attorney to determine what you can keep after filing for bankruptcy.