Like most formidable situations, bankruptcy has earned its reputation based on a few truthful facts and too many embellishments. Much of this misinformation was disseminated to the public after the new bankruptcy laws went into effect in 2005. Once you know the facts, filing for bankruptcy is not nearly as frightening as it first appears. Here are some of the most common myths about bankruptcy that you need to know before you begin your fresh start.

Myth #1: It is very difficult to file for bankruptcy.

Not true. The new bankruptcy laws have drastically decreased the amount of time it takes to be discharged from bankruptcy down to nine months. In today's economic climate, it is understandable that individuals need to file for bankruptcy for a new beginning. A qualified, experienced bankruptcy lawyer can make the process as simple and painless as possible.

Myth #2: You will lose everything.

This one of the biggest misconceptions that deter people who should from filing. Bankruptcy laws do vary from state to state, but every state has exemptions that can protect certain assets, such as your house, car (of reasonable value), qualified retirement plans, household goods and necessary clothing.

Myth #3: You will never get credit again.

Quite the opposite. Before you know it, your mailbox will be blossoming with credit cards offers again. The catch is that they will be from subprime lenders charging very high interest rates. In fact, you have a credit card with no balance at the time you file, you don't have to include it in your list of creditors, since you don't owe them money. There is also a good chance you may be able to keep the card after the bankruptcy.

Myth #4: If you are married, both spouses have to file.

This is not entirely true. It is uncommon for one spouse to have a significant amount of debt in their name only. If there are debts that a married couple wants to get discharged that they are both liable for, they should file together. If only one spouse files for bankruptcy, the creditors usually demand the entire payment from the spouse who didn't file.

Myth #5: You can only file for bankruptcy once.

You can actually file for bankruptcy more than once, but the new bankruptcy laws extended the amount of time in between filings. Chapter 7 bankruptcy can be filed for once every eight years and a Chapter 13 filing every two years. If you want to file for both on separate occasions, there is a four year wait in between the two.

Myth #6: Everyone will know you filed for bankruptcy.

Unless you are a very prominent person or a major corporation and the media catches wind, the only people that will know about your filing is your creditors. The amount of people filing is so immense that very few publications have the time, space or inclination to run them.

If you are seriously considering bankruptcy and you live in California, you need to consult with a California bankruptcy lawyer. While the process is complicated, they will be able to help you understand your options and help you avoid making bad decisions that you could later regret. If you are over-burdened with bills and cannot see any light at the end of the tunnel, bankruptcy may be the best option to help you get that much needed fresh start and allow you to rebuild your future. The law offices of Borowitz, Lozano and Clark, LLP specialize in California bankruptcy and exclusively represent debtors in Consumer and Small Business Bankruptcies. They have helped over 20,000 families get free from the burden of debt since 1997. Call today for a free debt consultation at 1-800-509-3200.