Myth #3 Filing bankruptcy will hurt your credit for 10 years.

Myth #3: Filing bankruptcy will hurt your credit for 10 years.


Myth, not true. Bankruptcy may appear on your credit report for 10 years, however it does not effect your credit for that length of time.  There is a common misconception that bankruptcy permanently ruins your credit and there is no coming back after filing.  Bankruptcy helps people resolve financial problems. Many clients are able to obtain secured credit and begin to rebuild their credit within months of their debt being discharge. It is possible to see a huge improvement in your credit score in as little as two years. As long as you regularly pay your bills, then you will see your score improve.

If you have financial problems it is best to deal with them, and not ignore them until your wages begin to be garnished or you are served. Bankruptcy may be one way to do that. Seek advice from a qualified lawyer to find out about your options.

Myth #2 If you have been SUED by a creditor it is TOO LATE to file for bankruptcy.

Myth #2: If you have been SUED by a creditor it is TOO LATE to file for bankruptcy.

Truth: Bankruptcy can stop a wage garnishment, foreclosure, sheriff sale and/or lawsuit through the Automatic Stay under section 362 of the Bankruptcy Code .  This Section of the Bankruptcy Code states all creditors of a debtor to cease collection activities. There is little exception to this section of law.  In most cases it stops a lawsuit or judgment collection in its tracks.