As a continuation of Bankruptcy Facts: Common Bankruptcy Myths Dispelled (Part 1), here are some additional myths versus facts when it comes to bankruptcy. Understanding the truth behind the bankruptcy process and its outcomes will help debtors decide whether bankruptcy is the best choice for them to unburden themselves from debt and achieve a financial fresh start.
My credit will be permanently destroyed if I file for bankruptcy.
While your credit will take a hit when you file for bankruptcy (and a bankruptcy could stay on your credit report for 7 to 10 years), the good news is that, after bankruptcy, there are a number of things that debtors can do to improve their credit score – even within the first year after filing for bankruptcy. For example, obtaining one secured credit card and paying off the entire balance on this card on time every month can help improve your credit score after bankruptcy.
I don’t have to list all of my assets on my bankruptcy paperwork.
This is a particularly dangerous misconception when it comes to bankruptcy. Failing to list all of your assets on your bankruptcy paperwork could result in your bankruptcy case being denied or, even worse, could subject you to allegations of committing bankruptcy fraud, which is a federal crime that both the IRS and the Department of Justice take incredibly seriously. If convicted on charges of bankruptcy fraud, you can face years in federal prison (and potentially destroy your career and/or personal reputation).
I don’t need to get my spouse’s approval in order to file a joint bankruptcy case.
This is also false, as both spouses need to consent to file for bankruptcy in order to have a joint bankruptcy case be accepted by the courts.
If you are facing seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.