Bankruptcy Myths

Many people fear bankruptcy for one simple reason; they do not understand or know the facts.

All of us at Albuquerque Business Law want to help you understand the top 5 most common bankruptcy myths.

Myth #1

“All my debt will be wiped clean after I file Bankruptcy”

Bankruptcy does in fact eliminate the majority of debt, but there are still certain ones that will not be discharged such as; child support, alimony, student loans some taxes.

Myth #2

“My credit will be completely ruined for 10 years”

Yes, a bankruptcy will appear on your credit history for up to 10 years, but there are ways to help improve your credit once you have filed. In fact, in the long run bankruptcy can help improve your credit, by wiping your financial slate clean you can then take the appropriate steps to rebuild.

Myth #3

 “Bankruptcy is a very difficult process, and hard to qualify for”

The most difficult part of filing for bankruptcy is making the decision to do so, the second most difficult step is finding an experienced attorney. Once these two decisions are made your attorney should help you make the process as painless as possible eliminating the burden of all the legalities and educating you along the way so that you understand the entire process.

Myth #4

“I will lose everything”

There are bankruptcy exemption laws that help protect most all of your assets when you file bankruptcy. In fact, most people who file bankruptcy do not give up any of their assets.

Myth #5

“I will never be able to get credit again”

This is absolutely not true. You can begin rebuilding your credit immediately after you file for bankruptcy.

It may take some time, and you will probably have to pay higher interest rates, but it most certainly can start to make a comeback within one year if done properly.

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