Three Bankruptcy Myths Debunked

Bankruptcy can be a confusing and stressful life occurrence for those that have to file. For the attorneys at Yardley Law, breaking down this process step by step for our clients is extremely important. There are many myths that surround bankruptcy we’d like to debunk three for you in this blog.

1 – You’re ruined after filing for bankruptcy

Many people believe that your credit will be obliterated after you go through a bankruptcy. This is not true. Soon after you file for bankruptcy, you’ll be offered the chance to begin rebuilding your credit from select financial institutions.

2 – Only financially irresponsible people have to file for bankruptcy

While many believe that only financially irresponsible people need to file for bankruptcy, there are three major life occurrences that often lead up to it. People that, lose their job, file for divorce, and those who must be treated for a serious illness. These people often rack up insurmountable debt dealing with these circumstances and bankruptcy is the only option.

3 – Bankruptcy will fix everything

Some believe that bankruptcy is a cure-all for your financial woes; however, this is not the case. While it won’t ruin you financially it doesn’t give you a clean slate either. Depending on the chapter of bankruptcy you file, you will most likely lose property or continue make payments on assets.

There are many more myths surrounding bankruptcy. If you have questions about if you should file, or what chapter you should be filing under, please contact Yardley Law today. We can debunk any myths you may have heard and help guide you through the process as comfortably as possible.


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