Misconceptions About Bankruptcy

Everyone will know I've filed for bankruptcy. 
The chances are very good that the only people who will know about a filing are your creditors. While it's true that bankruptcy is a public legal proceeding, the numbers of people filing are so massive and opposed to local court filings Bankruptcy is a federal filing and not published on the free state websites.

All debts are wiped out in Chapter 7 bankruptcy. 
Certain types of debts cannot be discharged, or erased. They include child support and alimony, student loans, restitution for a criminal act and debts incurred as the result of fraud.

I'll lose everything I have. This is the misconception that keeps people who really should file for bankruptcy from doing it. Oklahoma has very
debtor-friendly bankruptcy exemption laws that protect certain kinds of assets, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods, and clothing.  Most people pass through a bankruptcy case and keep everything they have If you have a mortgage or a car loan, you can keep those as long as you keep making the payments.

I'll never get credit again. 
Quite the contrary. Credit is based on an ability and desire to pay.  At the time of filing bankruptcy, a debtor can’t typically show these factors.   After filing, your discharge should be obtained in about 90 days.  After discharge, a debtor can show an ability and desire to pay, receive credit and within two years should have a credit score as high as it’s ever been.

If you're married, both spouses have to file for bankruptcy
Not necessarily. It's not uncommon for one spouse to have a significant amount of debt in their name only. However, if spouses have debts they want to discharge that they're both liable for, they should file together. Otherwise, the creditor will simply demand payment for the entire amount from the spouse who didn't file.

Only deadbeats file for bankruptcy. 
Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job or a serious illness. They've done everything in their power to stay afloat but circumstances place them where a Fresh Start is the best option.