Many people have false impressions about different aspects of bankruptcy. As a result, some folks miss the opportunity to become debt free.
Here is a list of some common bankruptcy myths:
Myth: If I file for bankruptcy, I will lose my assets, including my car or house.
Truth: Most people who file Chapter 7 bankruptcy are permitted to keep their assets. A Chapter 7 debtor can keep their assets if the value of the assets don't exceed the amount of the statutory exemption allowances. In a Chapter 13 bankruptcy, the debtors assets are protected.
Myth: I won't be able to obtain credit after the bankruptcy is over.
Truth: Most debtors that successfully complete their bankruptcy case are able to get credit cards and loans within a reasonable time-frame.
Myth: Married individuals cannot file individual bankruptcies.
Truth: An individual's spouse is not required to file.
Myth: I must have a minimum amount of debt to file for Chapter 7 bankruptcy.
Truth: An individual can file for bankruptcy even with a small amount of debt.
Myth: My employer will be notified of my bankruptcy.
Truth: The bankruptcy law does not require that an employer be notified of an employee's bankruptcy filing.