7 Myths People Fear About Filing for Bankruptcy

Filing for bankruptcy can feel overwhelming — and for many, it's the last thing they want to consider. But much of that fear comes from myths, half-truths, and misinformation. At Ridings Law Firm in Saint Louis, Missouri, we’ve helped thousands of clients break free from debt and take back control of their lives. In this guide, we debunk the 7 most common myths people fear about filing for bankruptcy.

Myth #1: I’ll Lose Everything I Own

Truth: Most people keep all their possessions. Bankruptcy laws include exemptions to protect your home, car, personal belongings, retirement accounts, and more.

Myth #2: Bankruptcy Permanently Destroys My Credit

Truth: Bankruptcy gives you a fresh start. Many people see their credit scores improve within 12–24 months after filing.

Myth #3: Everyone Will Know I Filed for Bankruptcy

Truth: Bankruptcy is public record, but unless you're famous or in the news, nobody is likely to find out unless you tell them.

Myth #4: Only Irresponsible People File

Truth: Honest, hardworking people file bankruptcy every day due to medical bills, job loss, or divorce. Bankruptcy is a financial tool — not a moral failing.

Myth #5: I’ll Never Get Credit or Buy a Home Again

Truth: Many people qualify for credit cards, car loans, or FHA mortgages within 1–2 years of filing. Lenders know bankruptcy is a reset, not the end.

Myth #6: Bankruptcy Doesn’t Cover Medical or Credit Card Debt

Truth: Bankruptcy is specifically designed to eliminate unsecured debts — including medical bills, credit card balances, payday loans, and more.

Myth #7: I Make Too Much Money to File for Bankruptcy

Truth: Even if you earn a good income, you may still qualify for Chapter 7 through the means test. Chapter 13 is also an option for structured repayment.

Let’s Talk About Your Options

At Ridings Law Firm, we’re here to give you honest answers — not judgment. Bankruptcy might be the lifeline you need.



📍 Saint Louis, Missouri
📞 Call today: (314) 448-5558
🌐 Visit: www.ridingslawfirmllc.com

Schedule your free consultation today and find out how we can help you protect your assets, eliminate debt, and move forward.