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A Top Five List Of Bankruptcy Myths

Urban legends may make for good storytelling or screenplays, but in real life it is helpful to know fact from fiction. When you can see through an urban legend as nothing more than a myth, you will be able to make decisions that are sound. One of the toughest areas to know what is true and what is not is your finances. With so many people facing unemployment, layoffs, or simply having more debt than can be paid, it is tempting to look for a fast and easy answer to get out of debt. The problem is that unless you have informed yourself on what works and what is legend, you could end up owing more.

Five of the most common bankruptcy myths include:

  • “I can keep my property without paying for it if I file for bankruptcy”. This is simply not true and if you are looking to get a free car or house, bankruptcy is not the answer. You are only allowed to keep property that you continue to pay for, even with bankruptcy.
  • “I can get out of paying taxes if I file for bankruptcy”. Again, this is simply not true. As the saying goes, the only thing besides death that is a certainly is taxes. You will still have to pay your taxes, even if you file for bankruptcy.
  • “I’m not good with money”. There is a perception that people that file bankruptcy are reckless with their income. The truth is that life happens, and when it does sometimes it costs more than most people can handle. An unexpected illness or death can financially wipe out a family, and bankruptcy can help.
  • “I can buy a bunch of stuff, and then file bankruptcy and get out of paying for it”. No! This is called fraud, and your creditors will challenge your right to discharge the debt within your bankruptcy case, leaving you to defend a lawsuit while you are in bankruptcy.
  • “My credit will never be the same if I file for bankruptcy”. This is also not true, and most people who file bankruptcy are able to obtain credit very quickly after their case is over.

Knowing what to expect during and after your case will put you in the best position to make a decision about filing. We can help, by answering your questions and offering options that make sense.


For accurate information about bankruptcy, contact us at We will help by coming up with solutions that work for you.

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