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Misconceptions surrounding bankruptcy add unnecessary confusion to a situation that is already stressful for many people; just the concept of bankruptcy can seem frightening. There are widespread myths about bankruptcy that need to be debunked so individuals and families make the best decisions for their financial situations.

To help determine whether declaring bankruptcy is the right path for you, you should devote some time to researching the facts about bankruptcy. Separating fact from fiction is crucial.

Myth 1: I will not be able to rebuild credit.

Many debtors fear that it is impossible to have a good credit score after filing for bankruptcy. In reality, you can typically start rebuilding credit shortly after completing the process. Freedom from debt may make it even be easier to rebuild credit. You can take back control of your finances and develop a better credit profile.

Myth 2: I will lose all property.

You do not have to forfeit all personal property when declaring bankruptcy. Some property is exempt, including savings accounts for health, education and hurricane coverage. Other exempt property may include furniture and appliances of a certain maximum value.

Myth 3: I will lose my job.

Employers are not allowed to fire employees who file for bankruptcy. In fact, no type of adverse action towards employees is allowed. Likewise, employers cannot discriminate against applicants because of their bankruptcy status. While bankruptcy is public record, employers are legally barred from making employment decisions based on the information.

Myth 4: I can’t get help for divorce payments.

While some debts cannot be discharged, there is still relief available. Restructuring debt through Chapter 13 bankruptcy allows some people to get assistance with child support, marital property settlement and court fines. If you have late payments, it is possible to reschedule them with the right bankruptcy plan.

Myth 5: Bankruptcy is too difficult.

The process of bankruptcy can appear quite confusing for those who have never filed, but it isn’t as difficult as it may seem. While there are several rules to follow, the process is efficient when you have professional lawyers to represent you.

Most people have received misinformation about bankruptcy, and there are plenty of irrational fears that cause people to forego the filing process altogether. Myths should not hold people back from making a financial decision that may put them on the right path to a better future.

Those considering filing bankruptcy are advised to speak with a professional bankruptcy lawyer for more helpful information.