One myth is – everyone will know I’ve filed for bankruptcy. Chances are that the only people who will know about a filing are your creditors. Bankruptcy is a public legal proceeding, but the number of people filings is so large that very few publications run all of them. Some local newspapers will print names of those who have filed in that community.
Another is that–all debts are wiped out in Chapter 7. Certain types of debts are not able to be discharged.
This includes child support and alimony, student loans, restitution for a criminal act and debts incurred as the result of fraud.
The final myth for today is that–if you’re married, you and your spouse have to file for bankruptcy. This is not always the case.