One of the most common bankruptcy myths is that once you file for bankruptcy you will not be able to reestablish your credit after bankruptcy. But for many of our clients, bankruptcy is the first essential step to financial freedom, which includes access to credit from reputable lenders.
Myth #1: My Retirement account will be taken in bankruptcy.
This is one of the most popular myths surrounding bankruptcy, but the fact is that most retirement accounts are protected by law from bankruptcy proceedings. Because of this, you can get full debt relief in bankruptcy without anyone touching your retirement accounts.
Myth #2: Bankruptcy will have a negative impact on my career.
Many people worry about a possible negative impact on their careers when they file for bankruptcy. Although some employers will pull credit reports, and in some cases, bankruptcy will be seen negatively by employers, in most cases it is not a problem.
Myth #3: Bankruptcy will ruin my credit.
Although your credit will be negatively affected upon the initial bankruptcy filing, it is usually a necessary first step to re-establishing credit. Many lenders will see you as a better risk for credit, and you can use the small amounts of credit you receive to rebuild your credit after bankruptcy.