Debunking Common Bankruptcy Myths
There is a lot of information out there about bankruptcy, but only some of it is accurate. If you are thinking about filing for bankruptcy, you may have heard some of this less accurate information from well-meaning acquaintances or read it online.
On this page, we will debunk some common bankruptcy myths. For up-to-date and accurate information about bankruptcy in Pennsylvania, you can always rely on Case & DiGiamberardino, P.C.
Myth #1: I Will Lose Everything If I File For Bankruptcy
Many people fear losing all their property after filing for bankruptcy, but this is not the case. Much of your property is covered under federal or state bankruptcy exemptions, including a house, vehicle and personal possessions. If you own certain luxury items, they may be seized in a Chapter 7 bankruptcy, but the law allows you to keep what you need to live and work.
Myth #2: I Will Never Get Good Credit Again After Filing For Bankruptcy
The truth is, if you need to file for bankruptcy, your credit score is likely not very high to begin with. In many cases, the best way to wipe the slate clean and start building good credit is to file for bankruptcy. Yes, the bankruptcy will impact your credit in the short term. But it won’t be long before credit offers start coming in. If you plan carefully and proceed with on-time payments, your credit score will eventually rise again.
Myth #3: You Can Only File For Bankruptcy Once
This is not true, although you must wait a certain amount of time between filings.
- You can only receive a discharge through Chapter 7 bankruptcy once every eight years.
- You can only receive a discharge through Chapter 13 bankruptcy every two years.
- If you receive a discharge under Chapter 7, you must wait six years before filing under Chapter 13.
- If you receive a discharge under Chapter 13, you must wait four years before filing under Chapter 7.
Get The Real Answers You Need
This page covered some general information about bankruptcy law. For answers to your specific questions, contact our law office online or by telephone at 610-936-6650 to arrange a free initial consultation with a knowledgeable Pennsylvania bankruptcy attorney.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.