There are a few myths about bankruptcy that are quite common, such as: you will lose your home and car, you’ll never get credit again, the 2005 law changes make you ineligible, creditors will keep harassing you after you file, and that it will make you feel guilty. Read on for insight on these ideas and a clearer understanding of bankruptcy.

If I file bankruptcy, I will lose my home and car and other property.

Most people DO NOT lose their property in bankruptcy. As far as your home and cars, as long as you are willing to continue making the regular monthly payment, you definitely will not lose these assets.

If you are behind on your payments, bankruptcy can help you get caught up with small monthly payments over an extended period of time. Depending on your circumstances, bankruptcy can also permanently LOWER your monthly payment, interest rate, and often even slash the principal balance.

If I file bankruptcy, I’ll never be able to get credit again.

Most people who need to file bankruptcy are having credit problems anyway. Depending on how serious your credit problems are, you may actually see your credit improve in a year or so after bankruptcy.

Bankruptcy certainly adversely impacts your credit, however, it also stabilizes it. In other words, negative items are not constantly being refreshed on your credit report. The further in time you move away from the bankruptcy filing, the better your credit will be.

People who file bankruptcy are even eligible for FHA and VA financing for a home two years after filing bankruptcy. Bankruptcy can help you have enough income to actually pay all your bills in a timely manner.

While bankruptcy is a big negative factor, after bankruptcy, if you begin to pay all your bills on time, you will be able to rebuild your credit.

After the new bankruptcy law in 2005, most people are not eligible to file bankruptcy.

While the much acclaimed BAPCPA law passed in 2005 did change many things about bankruptcy, most people are eligible to file either a Chapter 7 or Chapter 13. An extremely high wage earner may be limited to a Chapter 13 bankruptcy (reorganization), however, this is often the best choice anyway if you are trying to lower car payments, catch up on home loans, etc.

Even if I file for bankruptcy, creditors will still harass me and my family.

Absolutely false. In fact, once you retain us, even as we are preparing to file bankruptcy, creditors will stop calling you and will call us, and we will handle your communication with creditors. This gives you immediate stress relief.

Filing bankruptcy will make me feel guilty.

Many people struggle with guilt about filing bankruptcy. Unfortunately, circumstances can cause a person to get in a position where (if they are facing reality) they understand they cannot pay off all their debt. There is simply more money going out than coming in. The responsible reaction in this situation is to take care of yourself and your family, and consider bankruptcy as an option.

Some of the most successful people in history have filed bankruptcy, including Henry Ford, the former Governor of Texas, Donald Trump, and Walt Disney, just to name a few. This is the system of debt relief that our country has established. There is a Biblical basis for debt relief (the Year of Jubilee). Excessive debt is bondage. Even if your debt is caused from making mistakes or bad choices, living in bondage until death is not required. A fresh start is available!