When it comes to perceptions about bankruptcy, there’s very little in-between. Either it’s a new beginning that leads directly to financial freedom, or it’s a last resort that spells doom for anyone who ever wants to spend money again. This article talks about five of the most popularly held beliefs about bankruptcy, and why it isn’t as black-and-white as you might think.

Working in client services, one of the most common phrases I hear–usually uttered in a moment of sheer hopelessness and frustration–is, “Well, maybe I’ll just file bankruptcy and then my creditors will get nothing.” In their desperation, they probably see bankruptcy as a quick fix that will get rid of their debt once and for all, giving them a new start where their finances are concerned. Many people, myself included, have seen it as a permanent stain on your credit record and reputation that never truly goes away. While bankruptcy is advised as a last resort for getting out of debt (and rightly so), it’s not as awful as it’s often made out to be. Below are some of the most common perceptions about bankruptcy, and just how much truth there really is to them:

1. “My credit history will never recover from this, and I’ll never be able to get credit again!”

This all depends on you. If you keep the same spending habits you had pre-bankruptcy, your credit won’t recover. If you improve them, it will. Granted, bankruptcy does stay on your credit report for ten years, but this is nothing like a life sentence. During that time, focus on establishing a good credit history. One of the most important tools is the website annualcreditreport.com. You can obtain a free copy of your credit report from this website once a year, and it provides reports from Equifax, Experian, and TransUnion – the three major credit reporting agencies.

If you’re concerned about ever getting offers of credit again, don’t be. You’ll get them, but the interest rates will be higher than anything you may have seen pre-bankruptcy. According to Paula Langguth Ryan, author of “Bouncing Back from Bankruptcy,” what you should do is sign up for a secured credit card (basically, one that requires a cash deposit before it can be opened) that doesn’t get reported to the credit bureaus as secured. Ideally, Ryan recommends that you get a secured card with (1) no application fee, (2) a 25-day grace period, and (3) monthly reportings to the credit bureaus that don’t report the card as secured.

Conversely, people also believe that…

2. “Filing bankruptcy will give me a fresh start with my credit.”

No, it won’t. At least, not right away. From my experiences, when it comes to finances, there’s no such thing as a “quick fix.” Using the suggestions above, you can rebuild your credit, but in the meantime it’s not going to look good. In the ten years after you’ve filed, you’ll find it increasingly difficult (though not impossible) to apply for a job or any sort of loan to purchase a car or house if you need it.

A variation on this myth is when people think that bankruptcy will improve their credit rating. This is absolutely not the case. Of all the financial situations that can deal damage to your credit score, bankruptcy is without a doubt the most drastic. I think of bankruptcy’s effect on credit in a way like the effect of a volcano eruption on surrounding areas. It may devastate everything around it in the short-term, but long after the destruction, volcanic ash provides fertile soil for plants to grow. Bankruptcy may lay waste to your credit at first, but with enough time and effort, your good credit history can be rebuilt.