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Tulsa Bankruptcy Attorney | Bankruptcy Myths That Are Not True.
There is an amazing amount of myths about filing for Bankruptcy that are simply not true. In this article I want to help break down those myths. We all understand the fear around filing for bankruptcy. We also understand the dread around it. However, we do not want to encourage fear and we want to help break through some of the myths that simply are not true.
1) Only Financially irresponsible people file for bankruptcy
This is simply not true. There are many unexpected things that happen in life. Maybe you had an unexpected medical bill. Maybe you unexpectedly lost your job and were unable to find a new job fast and had an visit to the hospital while you were unemployed. Many unexpected things happen in in life. It is simply not true that only irresponsible people file for bankruptcy.
2) You will loose everything.
This is merely a myth. You will not loose anything. In fact you will probably stop loosing things. There will be temporary hold placed on your debtors and it is possible that the Court could end up discharging most of your debt.
3) No More Debt!
After you file for Bankruptcy does not mean that you will loose all of your debt. You will still be responsible for things such as child support, student loans, car loans and your mortgage. Bankruptcy will eliminate things like medical bills. However, it will not eliminate all debt.
4) It will destroy my Credit Score.
It is true that filing for Bankruptcy will impact your credit score in a negative way. This will only be temporary. It will stay on your credit report for 10 years after you file for bankruptcy. However, it in no way allows you not to be able to get credit. Credit might be harder to get for a while, but once you prove that you can pay your bills again then your credit score will also start to improve as well.
Filing for Bankruptcy is certainly not the end of the world. You should not treat it is as such. There will be many more opportunities in the future for you for you to gain your credit back. Filing for bankruptcy will certainly not stop you from purchasing a car or buying a new home. You might just be prepared to pay more in interest for those things until the Bankruptcy is no longer on your credit report.