For those struggling financially in Florida, bankruptcy can be a positive option to help people get out of a negative situation. Unfortunately, that option often has a bad reputation, causing many people who truly could benefit from filing bankruptcy to think twice. In hopes of clearing up some common misconceptions, here are a few bankruptcy myths to consider:

• If you file, you'll lose everything. In actuality, you can keep most, if not all, of your possessions, such as your house, cars, money in qualified retirement plans, household items and clothes. These are exempt in most states.

• After Chapter 7, I don't owe anything. Some debts are exempted and cannot be erased. These include student loans, debts that resulted from fraud, restitution for criminal acts, and alimony or child support payments. Generally, you also can't get rid of back taxes, although there is such a thing as tax bankruptcy.

• Credit will be impossible to get. Although you shouldn't run out and charge up your credit again, it is possible to get offers. At first, they may only come from subprime lenders with very high interest rates, but eventually things will come around. There are many companies that are willing to provide credit.

• If I file, it will be public. Although filing for bankruptcy is a public legal proceeding, unless you are a famous person or have a major corporation, it will probably never be picked up by the media. That is unless you have a local newspaper that prints community bankruptcy filings, which sometimes happens.

• I can max out my credit before I file. It may be tempting to max out your cards before you file so you don't have to pay those bills afterward, but this is considered fraud and looked down upon by bankruptcy judges.

These misconceptions, as well as the thought that only deadbeats file for bankruptcy, often scare people away from this valuable option. Most people who file for bankruptcy are not deadbeats at all, but in fact file after a life-changing experience, such as serious illness, being laid off or filing for divorce.

Source: MSN Money, "12 myths about bankruptcy," Nov. 17, 2011