Bankruptcy Myths Exposed – Things You Should Know Before Filing For Bankruptcy

erase-debt-by-filing-for-bankruptcy-by-alancleaver_2000.jpg Have you been thinking about filing for bankruptcy?

Sometimes the cost of bankruptcy alone will be a deterrent, but sometimes it is something more.

There are myths that have become associated with filing for bankruptcy over the years. Unfortunately, they are just that, myths.

Check out these 5 common bankruptcy myths, and educate yourself before you take the next step toward filing for bankruptcy.

The 2 that were most eye-opening to me:


  • All debts are NOT covered under bankruptcy. School loans, federal and state taxes, and debts incurred because of fraud you will still have to pay back.
  • Your boss CANNOT fire you if he finds out you have filed for bankruptcy. That would actually be illegal. Although if you are looking for work, potential employers can look at your credit record, but they can not use it as a basis for whether or not to hire you.


Here are some more bankruptcy myths worth exploring:


Wondering what type of things you actually get to keep after you file bankruptcy?

Bankruptcy Exemptions: What You Can Keep After Filing Bankruptcy is a must-read.



Some of my favorite things to write about are topics that have to do with living green, saving money, pregnancy, weddings, and dogs. When I'm not writing, I love to spend time with my husband, read, create 3D artwork and Native American beadwork.

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  • ffp

    I brought a piece of land about 7 years ago for about $250,000. I held on to it for four years before letting the bank foreclose it. The land was re-sold to new owners for less than $80,000. Now the collection attorneys want me to pay the balance.
    With the fees and no income to pay back almost $200,000. Is there any recourse than bankruptcy? Also I have another property that was foreclosed and sold at an auction for $139,000. It was $225,000 upside down… will collection attorney come after me for the difference too? What should I do? If I talk to a bankruptcy attorney …they will advise me to go thru bankruptcy without looking into any other direction.

  • rockland injury attorney

    Getting a debt consolidation loan is a good alternative for bankruptcy. Financial services can combine all your debts into one loan payment every month. A consolidation loan as an alternative for bankruptcy, can help pay off debts. For bankruptcy consolidation loans, you can shop online for the best terms and rates. Lenders are very competitive to earn your business online.

  • greensboro bankruptcy lawyer

    If you are on the very edge of filing bankruptcy and need a way out, there are multiple other options that may be available to you. If you feel like you’re hopelessly buried in debt and you have very few assets, filing for bankruptcy may not be the answer to ending your financial problems. Though it sounds like an easy and attractive solution for one’s financial problems, bankruptcy should be the last option any individual should resort to.

  • Eric

    Thanks Regina for a great post on Myths of Bankruptcy.  I especially liked that you highlighted that one’s boss cannot fire a person for filing for bankruptcy, which I know is a common concern.

  • Frank Fredrich

    This serves as a warning to us. Many people rush in filling bankruptcy without knowing all its laws and regulations. What you have shown Regina is, we must be knowledgeable enough in planning the things we are about to do most especially dealing with money and debts. wage garnishment