Bankruptcy Myths

Filing for bankruptcy will make your credit even worse
The average person’s credit score who files Chapter 7 bankruptcy improves by 100 points 12 months after a bankruptcy is filed.

The bankruptcy laws have toughened up so much I will no longer be eligible or get much relief from filing bankruptcy
The bankruptcy laws changed in 2005, but most of the changes are relatively minor and the general provisions of the law are all still there. 

You won’t be able to get credit for years
Consumers who file Chapter 7 start getting credit card offers in the mail immediately after filing bankruptcy. Consumers who file Chapter 13 can receive credit during the proceedings. It just won’t be at the best terms.
You can’t file bankruptcy if you have a job
You can have a job, although there is a cap on how much income you can make in order to qualify for a Chapter 7 bankruptcy. If your income exceeds that, you can probably still file a Chapter 13 bankruptcy.

Bankruptcy is shameful
Over 90% of bankruptcies are due to factors out of the control of most people, like illness, medical bills, or divorce.
All debts will be discharged in a bankruptcy
Certain debts like child support, alimony, and most taxes are not dischargeable.

Medical bills aren’t dischargeable
Medical bills and attorneys fees are dischargeable, along with credit card debt.

If one spouse files bankruptcy, it won’t affect the other spouse’s credit
If a married couple has joint accounts, the joint accounts will affect the other spouse’s credit.

Everyone will know I’ve filed bankruptcy
Most people don’t go scanning through court documents looking to see if others have filed for bankruptcy. Most likely only your creditors will find out.