Most people have heard about bankruptcy, but few actually understand what it means. This has led to numerous myths being passed around about the bankruptcy process and how it affects people who file. Today we are going to tackle four of the most common myths that our firm hears.
Myth No 1: Filing for bankruptcy ruins credit scores.
It's important to know that while a bankruptcy can remain on your credit report for 10 years, that does not mean that you will have poor credit during that entire time. Your credit, or your ability to borrow, will likely increase after filing for bankruptcy because you will no longer be struggling to pay bills that you cannot afford.
For the most part, you have control over building up your credit after bankruptcy, and it can often be repaired within a few years of the date your debts are discharged.