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Myths About Filing For Bankruptcy (Part 1)

Where do you get your information about bankruptcy? In most cases, it's not from a government agency or knowledgeable bankruptcy attorney - it's through what you might have seen on TV, inferred from books, or picked up from friends. Not surprisingly, much of the information you may have gleaned from the world about bankruptcy isn't all that accurate. Here are a few of the biggest bankruptcy myths:

· I'll never be able to buy a house or own property after bankruptcy. This is simply not true. Although it may not be wise to buy a property for a few years after declaring bankruptcy, you can rebuild your credit, save a down payment, and then find a lender - just like everyone else.

· Everyone will judge me if I declare bankruptcy. First of all, although bankruptcy is on public record, chances are that no one will find out unless you tell them or unless you are in the public eye. Second of all, especially in tough economic times, there are many people of all types and backgrounds who have found themselves in difficult financial situations - and most people will understand that you have researched your options and made the best choice for your family.

· Filing for bankruptcy is a difficult process involving a lot of red tape. Although bankruptcy has gotten more difficult over the past three years, it is certainly worth the trouble for certain people with specific financial troubles. Especially if you hire an experienced bankruptcy attorney to assist you, the process can be smooth and relatively fast. Today, you may even file for bankruptcy electronically.

· If I file for bankruptcy, my wife or husband will have to file, too. This is simply not true. Although it is often better for a couple to file for bankruptcy together, there are plenty of situations where it is optimal to have two people file separately, or to only have one person file. Your bankruptcy lawyer can help you decide which option is best for your family based on your individual circumstances.

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