“I’ll never recover from bankruptcy!”
“Everyone will think I’ve committed a crime!”
“Lenders will never consider me if I choose to file!”
There are hundreds of judgmental opinions floating around about how to declare bankruptcy, who is eligible, and what happens after you file. Many of these myths are simply untruths perpetuated by creditors to discourage you from making a decision that doesn’t benefit their bottom line. But what if filing for bankruptcy is the best decision for you?
While declaring bankruptcy is a decision not to be taken lightly, sometimes it is your best (or only) option to escape the reality of crushing debt. If you’re considering filing for bankruptcy, let’s debunk a few common myths surrounding the legal procedure with the disproving facts that will ease your mind.
Myth #1: Your Credit Score Will Be Irreparably Damaged
This myth is one of the biggest falsehoods about bankruptcy. After filing for bankruptcy, you will see a hit on your credit report and the filing can be on your record for 7-10 years. The good news is, the second your filing is over you can begin to rebuild your credit score.
There are many ways to boost your credit score and rebuild your life after bankruptcy. Depending on your level of debt, some individuals may even see an increase in their credit rating just by filing for bankruptcy.
Myth #2: You’ll Never Be Successful Again
Just because you file for bankruptcy doesn’t mean your life is over! Many successful individuals file for bankruptcy and go on to rebuild very successful careers and businesses.
Did you know that Walt Disney filed for bankruptcy when he was younger and went on to build an empire worth $98 billion dollars? Even frugal living mogul Dave Ramsey filed for bankruptcy and went on to create a business that helps others stay out of debt.