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Myths About Filing For Bankruptcy (Part 2)

In our last bankruptcy library article, we discussed some of the bankruptcy myths that you may have heard over the years. This week we will shed light on even more bankruptcy myths and help you decide what the best path is for your individual situation based on the simple facts.

· It is shameful to file for bankruptcy - it's admitting failure. The vast majority of people file for bankruptcy after a tough life change, such as a divorce, medical emergency, or layoff. Others simply made bad decisions and need a clean slate and a new opportunity. All in all, over one million people file for bankruptcy a year - for a variety of reasons. It doesn't mean they are bad people or irresponsible people. If that were true, there wouldn't be a system to help these people turn the page.

· I'll never be able to use a credit card again. Although at first your credit card companies will charge you high interest rates, you can still get a credit card in the wake of a bankruptcy. And although you should be very careful when using credit in the years after filing a bankruptcy, your credit will improve in a few years, especially if you make smart choices.

· I can't file for bankruptcy because I already did in the past. Although there is a waiting period between filing, you can file for bankruptcy again. Beginning in 2005, you are allowed to file for Chapter 7 bankruptcy every 8 years and Chapter 13 bankruptcy every two years. Remember, though, that repeat filings will be very damaging to your credit and could perhaps point to deeper issues you may be having with handling your finances.

If you live in Missouri or Illinois and need more information about whether filing bankrucpty is the right choice for you, contact an experienced St. Louis bankrutpcy lawyer today.

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