Top Myths About Bankruptcy Debunked

While bankruptcy isn’t a the first choice for many people in tough financial situation, hundreds of thousands of people file for personal bankruptcy every year. Filing bankruptcy can be one of the only options you might be left with.

Since talking about bankruptcy is considered a taboo in many cultures, there are lots of myths circulating around this topic. So, let’s debunk a few of the biggest myths about qualifying for bankruptcy in Tennessee.

Married People Have to File Together

It is common for married couples to file for bankruptcy together. However, in certain circumstances, one person might have a significant amount of debt to their name. If this is the case with you as well, you better file for bankruptcy alone.

However, if the debt is almost equally distributed between the married couple, they should both file for bankruptcy at the same time.That is because if both spouses share debt and only one files bankruptcy, the other one will have to pay back the full amount.

Bankruptcy Kills Your Credit Score Forever

No matter how many times you file bankruptcy, it cannot wipe out your credit completely. However, filing for bankruptcy can limit your credit success for several years to come, but the effects are not ever lasting. In fact, people who file for bankruptcy start receiving credit card offers within a few weeks of getting their debt discharged. However, new credit cards come with low limits.

You Can Spend Lots of Money Before Bankruptcy With No Side Effects

Since filing for chapter 7 bankruptcyHelps you get rid of all your credit card debt, you should be able to buy whatever you want right before filing for bankruptcy, right? This is one of the biggest misconceptions which many people have.

In fact, if you go on a shopping spree right before filing for bankruptcy, the court might see it is fraud. So, never make this mistake.