There are a lot of things that people hear about the bankruptcy process that are simply not true. These are some of the most common myths about bankruptcy.
1. You will lose your house, car, and other assets if you file a bankruptcy. This is one of the most common things that we hear from potential clients at the Bankruptcy Law Center. The truth is that if you hire an attorney who knows the bankruptcy laws and how to protect your assets, like the attorneys at the Bankruptcy Law Center, you will be able to keep your house, car, and other assets and still be able to discharge your debts in a bankruptcy.
2. It will take you seven years before you will be able to get a loan again. Actually bankruptcy helps you to rebuild your credit by discharging your high interest, unsecured debt. Many of our clients are able to get a loan quicker with a bankruptcy than they could have if they didn’t file and take care of their debt.
3. You’ll never be able to buy a house again. There are several different programs that allow people to get a mortgage within a few years of filing. Many of our clients are approved for home loans within two years of receiving a bankruptcy discharge.
4. Your credit score will be ruined, and I’ll never get credit again. For most people getting rid of their debt through bankruptcy helps them rebuild their credit faster than if they didn’t file. Responsible use of your finances following bankruptcy will allow you to obtain credit within a short period of time.