Don’t Fall for These Common Bankruptcy Myths

 debt defense attorneyThere are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the best ways to avoid problems with bankruptcy myths.

Here are ten of the most common bankruptcy myths:

1. Filing for Bankruptcy Means I’ll Lose All of My Possessions

This is simply not true. In most cases, you will be able to keep your home and your car. You may have to give up some luxury items, but you won’t be left penniless and without assets.

2. Bankruptcy Ruins My Credit Forever

While bankruptcy will stay on your credit report for seven to ten years, it is not the end of the world. You can still get credit during that time, and your credit will gradually improve as the bankruptcy gets older.

3. I Can’t File for Bankruptcy If I’m Employed

This is another myth. You can file for bankruptcy regardless of your employment status. Your debt defense attorney will help you evaluate your options if you have a steady income.

4. Only Irresponsible People File for Bankruptcy

This could not be further from the truth. People from all walks of life can find themselves in financial difficulty. Sometimes it is due to factors beyond your control, such as medical bills or a job loss.

5. I’ll  Never Get a Loan If I File for Bankruptcy

Again, this is not true. You may have to pay higher interest rates for a while, but you will still be able to get loans.

6. I Can’t File for Bankruptcy If I’m Behind on My Taxes

This is yet another myth. You can actually use bankruptcy to discharge your tax debt depending on how old the debt is.

7. Filing for Bankruptcy Means I’m Admitting Defeat

This could not be further from the truth. Filing for bankruptcy is a difficult decision, but it is often the best way to get a fresh start. Speaking to a debt defense attorney can help you make the best decision based on your circumstances.

8. I’ll Never Own a Home If I File for Bankruptcy

While it may take some time to rebuild your credit, eventually you can own a home again. Lenders consider your credit history, but once enough time passes, they’ll have few concerns about your bankruptcy. Eventually, it will drop off your credit report and lenders won’t even know.

9. I Can Wipe Out Every Debt with Bankruptcy

This is not true. Some debts cannot be discharged in bankruptcy, such as student loans, child support, and alimony.

10. Bankruptcy is Too Complicated and Working with a Bankruptcy or Debt Defense Attorney is Too Expensive

This myth can lead to a huge mistake. Creditors are not required to accept payment plans, so they may continue to harass you or even sue you even if you’re trying to pay. Filing for bankruptcy will give you the fresh start you need. Working with an attorney improves your chances of a successful bankruptcy filing.

If you are considering filing for bankruptcy, it is important to talk to an experienced bankruptcy or debt defense attorney. He or she can help you understand the process and dispel any myths that you may have heard. To learn more, contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation.


Video Testimonials

Tampa Bankruptcy Law Blog

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
Read More

These 7 Common Bankruptcy Mistakes Can Cost You Thousands

Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay some or all of their debts....
Read More


For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More


We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation


Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions