Only losers file for bankruptcy protection.
People from all walks of life in difficult financial situations find themselves needing bankruptcy protection. Even the most responsible people can wind up in a financial trouble.
You can only file bankruptcy once.
The law allows you to file more than one bankruptcy in your lifetime. Under Chapter 7, your debts can be discharged once every 8 years. However, other options, such as Chapter 13, Chapter 11 – as well as others – can also be utilized when needed.
Your bankruptcy will become public knowledge.
Bankruptcy court records are available to the public, but it is unlikely that that anyone will know unless you are a public figure. Furthermore, public records are inundated with names. If someone attempted to look specifically for your name, it could take a lot research to find yours. About the only people who would know about your bankruptcy filing are your creditors, the trustee assigned to your case, your attorney and you.
You will lose everything if you file for bankruptcy protection.
The law recognizes that bankruptcy is not a punishment, but a resource for good people in bad situations and thus gives you exemptions to protect your property. As such, the majority of debtors actually lose absolutely nothing.
Your credit is permanently destroyed after filing for bankruptcy.
Truth be known, banks and other lenders tend to give another chance to people who file for bankruptcy protection. Bankruptcy wipes out your debt, which also allows you to handle more credit.