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Posted 04/29/2023 by Frey Law, P.A.

7 Bankruptcy Myths That Could Harm You

Bankruptcy is a financial tool designed to help people who are struggling with debt. Unfortunately, there are many myths surrounding bankruptcy that can prevent people from seeking the help they need. In this article, we will discuss seven bankruptcy myths that could harm you.

Myth 1: Bankruptcy Will Ruin Your Credit Forever

Many people believe that bankruptcy will destroy their credit forever. Although bankruptcy can have a detrimental effect on your credit score, it is not a permanent change. In fact, many people see their credit score improve within a few years of filing for bankruptcy.

Myth 2: You Will Lose Everything If You File for Bankruptcy

Another common myth about bankruptcy is that you will lose everything you own. This is simply not true. In most cases, you can keep your assets, such as your home and car, while still getting the debt relief you need.

Myth 3: Bankruptcy Is Only for People Who Are Irresponsible with Money

Bankruptcy is not a sign of financial irresponsibility. Many people file for bankruptcy due to unforeseen circumstances, such as medical bills or job loss. It is a tool designed to help people get back on their feet and start fresh.

Myth 4: You Can Only File for Bankruptcy Once

Contrary to popular belief, you can file for bankruptcy more than once. However, there are certain restrictions and limitations that apply, so it is important to consult with a bankruptcy attorney to determine your options.

Myth 5: Bankruptcy Is Expensive

While there are costs associated with filing for bankruptcy, such as attorney fees and court costs, it is often more affordable than continuing to pay off overwhelming debt. Additionally, many bankruptcy attorneys offer payment plans to make the process more manageable.

Myth 6: You Will Be Publicly Shamed for Filing for Bankruptcy

Filing for bankruptcy is a private matter. While bankruptcy is a matter of public record, it is not something that is widely publicized or advertised. The majority of people won't ever be aware that you filed for bankruptcy.

Myth 7: Bankruptcy Is a Moral Failing

Finally, one of the biggest myths about bankruptcy is that it is a moral failing. This is simply not true. Bankruptcy is a legal process designed to help people who are struggling with debt. It does not speak to your moral fiber or value as a person.

If you are struggling with debt, don't let these bankruptcy myths prevent you from seeking the help you need. Consult with a bankruptcy attorney to learn more about your options and determine the best path forward.


Q : Will bankruptcy stop creditors from harassing me?

A : Yes, filing for bankruptcy will put an automatic stay in place, which will stop creditors from harassing you.

Q : Can I keep my home if I file for bankruptcy?

A : In most cases, yes. You can typically keep your home while still getting the debt relief you need.

Q : Will I lose my job if I file for bankruptcy?

A : No, you cannot be fired for filing for bankruptcy. It is illegal for employers to discriminate against employees or job candidates based on bankruptcy.

Q : Will I have to go to court if I file for bankruptcy?

A : Yes, you will have to attend a meeting of creditors, also known as a 341 meeting. However, this meeting is typically short and straightforward.


Bankruptcy can be a viable solution for individuals struggling with debt. Don't let common misconceptions hold you back from seeking the relief you deserve. If you're in Tampa and considering bankruptcy, seek the guidance of a knowledgeable Bankruptcy Lawyer Tampa. At freylawpa.com, we're committed to helping our clients achieve financial freedom. Contact us today to learn more about how we can assist you in taking the first step towards a brighter financial future.

Reference URL :- 7 Bankruptcy Myths That Could Harm You

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