The term bankruptcy still carries with it a certain amount of shame and reproof. Many people feel bankruptcy is a “bad” word and that filing bankruptcy is something to be ashamed of and concealed. Common myths associated with filing for bankruptcy relief include that it is only for people who are poor. Many believe bankruptcy is associated with poverty. This is not the case as bankruptcy means you have more debt that you can pay whereas poverty means you do not have the money to pay even your basic needs.

To read about four more bankruptcy myths see, “Top 5 Bankruptcy Myths Debunked.”