by John G. Merna, Esq.
We get dozens of calls each week from people who are trying to decide whether bankruptcy is a better option than struggling with their bad debt.
There are a number of ways to look at your situation to determine if bankruptcy will get you further ahead credit wise. I want to start by first explaining some of the bankruptcy myths that hold people back from rationally weighing their options logically.
Bankruptcy Myth 1 – You can’t recover your from Bankruptcy for 10 years.
This is not true. The confusion here is people mistakenly assume that the length of time a bankruptcy is remains on your credit report is that same as how long your credit is affected. How long a bankruptcy is on your credit report is not the same as how long your credit will be affected. You can recover from the bankruptcy to the point of buying a house within three years. Your “credit” is your credit score, FICO or Beacon. A bankruptcy filing only affects your credit score once and the effect on your credit score is so minimal that within a few months of filing bankruptcy your credit score can be higher than it was before you filed bankruptcy.
Bankruptcy Myth 2 – Bankruptcy won’t get rid of all of my debt.
This just a variation of myth one that bankruptcy will hurt you longer than if you struggle with my bad debt and poor credit. I If you look at your debt and your ability to pay it off with a open mind you would realize that the cost of paying off bad debt can be very expense and delay your recovery for years.
So five reasons to file bankruptcy instead of struggling to pay bad debt and continuing to have bad credit.
1) Instant relief. You immediately can stop paying your debt. This can be an enormous relief for most.
2) Instant protection. Whether you have been experiencing garnishments or just harassing collection phone calls, it all stops almost immediately. The protection of bankruptcy is automatic when you file and almost immediate.
3) Affordable. When you consider what you are paying out each year to just maintain your debt, paying a bankruptcy attorney is a bargain.
4) Easy. While you have to assist your bankruptcy attorney by collecting documents, this is considerably easier than the stress of continuing to struggle to pay your debt.
5) Fast Recovery. If you compare how long it would take for you to payoff your debt and recover your credit with the fact that you can buy a house within three years after a bankruptcy, there generally is no question- you can recover faster with bankruptcy.
So a I am known to say often “A bankruptcy recovery is faster, cheaper, and easier for most than struggling to pay off your debt.”
Check out our bankruptcy recovery program which is free to our clients (MernaLaw.info). Give us a call today at Merna Law for a free consultation.
Why Waiting Makes It Worse
Every month you delay filing, three things compound against you. First, interest and fees continue accumulating on your debts — credit card balances at 25-30% APR can double in three years of minimum payments. Second, creditors escalate collection activity. What starts as phone calls becomes lawsuits, judgments, wage garnishments, and bank levies. In Virginia, a creditor with a judgment can garnish up to 25% of your disposable wages, and that garnishment continues until the debt is paid or you file bankruptcy. Third, the financial stress affects your health, your relationships, and your job performance — costs that do not show up on a balance sheet but are very real.
The Fresh Start Is Real
Bankruptcy is not a theoretical concept. The discharge order you receive from the Eastern District of Virginia is a federal court order permanently prohibiting your creditors from ever collecting on those debts again. No phone calls, no letters, no lawsuits, no garnishments — ever. Any creditor who contacts you after discharge is violating a federal court order and can be held in contempt.
For most Virginia filers, the practical result looks like this: thousands of dollars in monthly debt payments disappear. Your paycheck is yours again. The anxiety of screening calls and dreading the mail stops. And the credit rebuilding begins immediately — most Merna Law clients receive their first credit card offers within weeks of discharge and reach mortgage-qualifying credit scores within two to three years.
Take the First Step
A free consultation with Merna Law takes about thirty minutes and gives you a complete picture of your options. We will review your income, debts, and assets, tell you whether you qualify for Chapter 7 or Chapter 13, and explain exactly what each path looks like from start to finish. No obligation, no judgment — just clear information so you can make an informed decision.
Call 1-800-662-8813 or schedule online.
See also: Chapter 7 vs. Chapter 13 | Five bankruptcy myths debunked | What is bankruptcy?
Last reviewed by John G. Merna, Esq. | July 2026
