One common myth I frequently hear is that you can pick and choose which debts to include in your bankruptcy. People tell me they don’t want to include a particular debt, such as the debt owed to their dentist, in the bankruptcy.
In fact, all your debts are included. You are obligated to list all of them. And, (unless the debt in question is the type that is not dischargeable, e.g. child support) they are all discharged.
If you wish you can still pay a debt even if it has been discharged in bankruptcy. But you can not choose which debts to include or not include in your bankruptcy.
Another common myth is that your credit score will be ruined if you declare bankruptcy. This is usually not the case. This question has not actually been studied until recently. But a recent study shows that your credit score usually improves after declaring bankruptcy. When you think about it that makes sense. You don’t have any debt anymore and you can’t declare bankruptcy for another 8 years. You are a better credit risk.
Another myth is that bankruptcy is wrong and it is an example of how our modern society is ready to avoid its responsibilities. The truth is there is nothing modern about bankruptcy. It has been around practically since the beginnings of recorded history.
The bible has this reference:
At the end of every seven years, you shall grant a release. And this is the manner of the release: every creditor shall release what he has lent to his neighbor. He shall not exact it of his neighbor, his brother, because the Lord’s release
has been proclaimed.