Bankruptcy Myths

Dispelling Myths about Bankruptcy

Many people have misconceptions about bankruptcy and what filing for bankruptcy can accomplish in their lives. Some myths about bankruptcy are discussed below.

At Sypher Law we provide free initial consultations in which we explain the bankruptcy process and how it can help people obtain debt relief. For a free consultation and answers to your questions, call 913.451.8833 or email us at

Bankruptcy Myth #1 – Changes in the law make it impossible for most people to file for bankruptcy.

Not true. It is still possible to obtain debt relief through a bankruptcy filing. Sypher Law has helped thousands of people file for bankruptcy since the laws were changed in 2005. It may mean you have to file a Chapter 13 bankruptcy rather than Chapter 7, but debt relief is still possible.

Bankruptcy Myth #2 – If you file for bankruptcy, you’re going to lose your house, your car and your life savings.

False. It may be possible to keep your house, your car and your personal property. Sypher Law will review your situation and advise you about the path you should take. The bankruptcy laws were written with the purpose of giving honest people a second chance, Sypher Law can help you take advantage of these laws and the opportunities they provide.

Bankruptcy Myth #3 – If I file for bankruptcy, my credit will be ruined for ten years or more.

Not true. Your credit rating will actually begin to improve soon after you file for bankruptcy. The reason is simple – your debts have been forgiven. You credit report will show $0 in debts, unless you reaffirm some of you debts after filing for bankruptcy. You will even be able to buy a house or take out a car loan after a short time as long as your credit history remains good after you receive your discharge in bankruptcy.

Bankruptcy Myth #4 – Filing for bankruptcy does not stop creditor harassment.

Again, this is not true. The moment we file for Chapter 13 or Chapter 7 bankruptcy for you, creditor harassment must stop. If a creditor does call, you can refer them to us and we will handle the situation. That’s our job. Your creditors do have the right to appear at the bankruptcy hearing, but in personal bankruptcy cases this rarely if ever happens.

Bankruptcy Myth #5 – Filing for bankruptcy is an admission of failure and is morally reprehensible.

Completely false! Many people have no choice but to file for bankruptcy due to divorce, job loss, medical problems, dependents who need care, and numerous other reasons beyond their control. Rarely, if ever, do people file for bankruptcy because they were spending lavishly and knew they could not pay back their debts.

If you have to file for bankruptcy because you over extended yourself financially, by filing for bankruptcy you have recognized that you cannot keep doing things the same way. Far from being blameworthy, your action is praiseworthy, because you have decided to change your ways and make a new start for yourself.

The reasons for filing for bankruptcy are now more a failure of this country’s current lending and health care systems then personal failures of the people who have to file for bankruptcy.

We are a debt relief agency. We proudly help people file for bankruptcy relief under the Bankruptcy Code.