Bankruptcy is a process created to give consumers the opportunity to repay or eliminate debts. Don’t be fooled by the bankruptcy myths, here are some of the common misconceptions and the facts about bankruptcy.


Myth: Bankruptcy will prevent me from buying a house or car and make me ineligible for credit cards.
Truth: In most cases, CREDIT SCORES IMPROVE and you can:

1. Purchase a home in 2 years (FHA Financing)!
2. Finance a vehicle at Discharge (Replace Vehicle)!
3. Obtain credit cards at Discharge!

Myth: I will be discriminated against and everyone will know I filed for bankruptcy.
Truth: Federal law makes it illegal for anyone to discriminate against you because of bankruptcy. Although filing for Bankruptcy is public information, it is not published in the papers and other media, and takes considerable time and effort for anyone other than your creditors to know you filed.

Myth: The BAPCPA Bankruptcy Amendments of 2005 prevent me from filing bankruptcy.
Truth: The BAPCPA Bankruptcy Amendments actually make it easier to qualify for bankruptcy in many cases!

Myth: I’ll lose my house and my car if I file for bankruptcy protection.
Truth: As long as you stay current on your mortgage and/or car payments, you will keep your house and car in almost all cases.

Myth: Bankruptcy lowers my credit score.
Truth: Bankruptcy increases the credit score for 90% of our clients since the elimination of debt has a positive effect on FICO scores.

Myth: I don’t owe enough money to file for bankruptcy.
Truth: There is no debt minimum to filing for bankruptcy. We have filed for people who owed less than $2,000.00 and people who owed over $1,000,000.00! If you cannot afford to pay off your debts in the near future with what you make now, the amount doesn’t matter!

Find more information out from one of our Manchester bankruptcy attorneys.