Filing for bankruptcy can feel like stepping into the unknown. It's stressful, overwhelming, and full of questions. To make matters worse, myths and half-truths about the process often scare people away from getting the help they truly need. But the truth? Bankruptcy can be a powerful tool for hitting the reset button. If you're thinking about it, talking to a bankruptcy attorney in Maryland can clear up a lot of confusion. Before you make any decisions, let's bust some common myths wide open.

Myth #1: Only Irresponsible People File for Bankruptcy

Truth: Life happens. Most people who file aren't reckless spenders. They're just regular folks dealing with job loss, medical bills, divorce, or other curveballs life throws. Bankruptcy isn't about failure—it's about getting back on your feet. And honestly? Taking control of your finances is a smart move, not a shameful one.

Myth #2: You'll Lose Everything You Own

Truth: Nope, you're not walking away empty-handed. Maryland has exemptions that protect certain assets. This could include your house, car, clothes, household items, retirement accounts, and more. The point of bankruptcy isn't to strip you bare. It's to give you a fair shot at starting over. With the right guidance, you'll likely keep most of what matters to you.

Myth #3: Bankruptcy Destroys Your Credit Forever

Truth: It definitely affects your credit—but not permanently. Bankruptcy may remain on your credit report for as long as 10 years, but that doesn't spell the end of your financial future. In fact, plenty of people begin repairing their credit within just a year or two. With careful budgeting and smart choices, your score can recover faster than you'd expect. Believe it or not, some lenders are even open to working with individuals shortly after bankruptcy.

Myth #4: Getting a Loan After Bankruptcy Is Impossible

Truth: You absolutely can. Will it be easy? Not right away. But you're not blacklisted for life. In fact, some lenders specialize in working with people who've gone through bankruptcy. Car loans, secured credit cards, and even mortgages are still possible. Sure, you'll likely face higher interest rates at first—but those improve as your credit score does.

Myth #5: All Debts Get Wiped Out in Bankruptcy

Truth: Not quite. Bankruptcy discharges a lot of debt—credit cards, personal loans, medical bills. But some types are tougher to shake. Student loans, child support, alimony, and certain tax debts usually don't go away. That's why it's smart to speak with a pro and figure out what can—and can't—be cleared.

Myth #6: It's Too Late to File if You're Being Sued or Garnished

Truth: Filing can actually stop the madness. The moment you file, something called the “automatic stay” kicks in. It puts a freeze on most collection actions—lawsuits, garnishments, foreclosure, even those annoying phone calls. It gives you breathing room. So no, it's not too late. In fact, it might be the perfect time to act.

Myth #7: Filing for Bankruptcy Is a One-Time Deal

Truth: You can file again—but there are limits. You can't just file back-to-back, but you can file more than once. The waiting period depends on which type of bankruptcy you filed before and which one you're filing now. If life hits you hard again down the line, there's still a safety net. Again, it's best to chat with a bankruptcy attorney to figure out your options.

Bankruptcy isn't the end of the road—it's a fresh start. The myths out there can make you feel hopeless, but the facts tell a different story. Whether you're drowning in debt or just weighing your options, don't let shame or misinformation hold you back. A bankruptcy attorney in Maryland can walk you through the process, answer your questions, and help you regain control of your financial life. At the end of the day, it's all about moving forward—with clarity and confidence.