🚫 Bankruptcy Myths (and the Truth Behind Them)
Bankruptcy is complicated — and with that, a lot of myths float around. Maybe you’ve heard scary stories from a friend or family member. Maybe your uncle in Minnesota filed back in 1984 and swears it “ruined his life.” The truth? Bankruptcy today in Clark County, Las Vegas, North Las Vegas, Henderson, and the rest of southern Nevada looks very different — and much more helpful — than those old stories suggest.
At A Fresh Start Law, we’ve helped thousands of people separate myth from reality. Let’s clear things up.
🧠 Why So Many Myths Exist.
- ⚖️ Laws change over time — what was true 20 years ago may not apply today.
- 🌎 Location matters — Nevada’s community property laws are unique.
- 👥 Personal bias — Some see Bankruptcy as “giving up.” Others think it’s only for people living in poverty.
The truth? Everyday Nevadans — homeowners, parents, professionals, retirees — use Bankruptcy as a tool to reset and move forward.
🔍 Common Myths About Bankruptcy.
Myth 1: Bankruptcy wipes out all debt.
Reality: ❌ Bankruptcy won’t clear child support, most taxes, court fines, or (usually) student loans.
Reality: ❌ Bankruptcy won’t eliminate your mortgage, or cancel your active vehicle loan. So, no free stuff, sorry!
✅ But credit cards, medical bills, and personal loans? Usually gone.
Myth 2: Bankruptcy ruins your credit forever.
Reality: If you’re behind on making your payments, your credit is likely already hurting. Many people see an improved score within months of filing. With effort, you can rebuild credit in a year or two.
Myth 3: You’ll lose your home or car.
Reality: Not if you keep current on your payments. Nevada’s exemption laws protect most people’s homes (up to $605,000 in equity) and vehicles (up to $15,000 in equity).
Myth 4: Filing makes creditor harassment worse.
Reality: Federal law stops harassment. 📵 Once you file, creditors can’t call, email, or sue you. If they do, the court can penalize them.
Myth 5: You can only file Bankruptcy once.
Reality: You can only receive a Chapter 7 discharge every 8 years, but you may still file a Chapter 13 in between if you qualify.
Myth 6: Everyone can file Bankruptcy.
Reality: No — to file any bankruptcy correctly, you must meet certain income and eligibility rules. That’s where having an experienced bankruptcy lawyer helps. An incorrect bankruptcy will be dismissed and damage your credit for no good reason.
Myth 7: Bankruptcy solves every debt problem.
Reality: Bankruptcy is powerful, but it isn’t a miracle fix. It’s one option among many — and sometimes, it’s not the right one.
📋 Why Talk to an Attorney First?
Every case is unique. A “generic” answer online could mislead you. With 35+ years of experience and over 30,000 questions answered on Avvo, Attorney Dorothy Bunce can explain whether Bankruptcy makes sense — or whether a different debt strategy is smarter.
⚠️ Be ready to share your financial details — the more aware you are, the better the advice will be about your options. If you have been hiding from the reality of your financial problems, now is the time to face the raw truth.
📞 Ready to Learn the Truth?
Don’t let myths keep you from a fresh start.
- 📅 Free Consultation with Attorney Dorothy Bunce.
- 📞 Call us today at (702) 551-3256 for a same-day callback.
- 🤝 Honest answers, no pressure.