The decision to file for bankruptcy is typically a last resort for consumers who find themselves plagued with debt. While bankruptcy may offer a fresh start and relief from bills incurred from divorce, unemployment and uninsured medical costs, many consumers worry about how the decision will ultimately impact their financial future.

Myth #1 – Filing for bankruptcy will permanently ruin my credit.

This is false! Filing for bankruptcy may actually increase your credit score especially in the years following a bankruptcy filing. If a debtor pays his/her bills on time and behaves in a financially responsible manner, a higher credit score is guaranteed.

Myth #2 – I won’t be able to get any credit for 10 years.

This is also false! Most debtors who have filed bankruptcy are able to obtain a credit card within months after their bankruptcy discharge and within a year or two many are able to qualify for a home mortgage and car financing.

Myth # 3 – If a potential employer discovers that I filed bankruptcy, I won’t get hired.

This is another false statement that stops many debtors for seeking much needed bankruptcy relief. Although many employers are running credit checks, they are required to notify the job candidate in advance and obtain their written approval before doing so. If a candidate has filed a bankruptcy, this will not disqualify them from the job at most companies.