1. Everyone will know I've filed for bankruptcy. Unless you're a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors and your attorney.

2. I'll lose everything I have. While the bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of assets, such as your house, your car (up to a certain value), money in qualified retirement plans, household goods and clothing.

3. I'll never get credit again. Many people start getting credit card offers right after filing. But beware, these offers generally come from subprime lenders that will charge very high interest rates and enter you back into the cycle of debt.

4. It's really hard to file for bankruptcy. It's really not. Your creditors just want you to believe that it is difficult so you continue to pay their high interest rates and late charges.

5. Only deadbeats file for bankruptcy. Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job or a serious illness. They've struggled to pay their bills for months and just keep falling further behind, and the farther behind you get the more the credit card companies charge you. It becomes a losing battle where your only way out is to start over and THAT IS WHAT BANKRUPTCY IS FOR, A FRESH START.