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We already talked about some of the perceptions about bankruptcy in part one of my blog. Below are some of the other perceptions that you may have heard:

• "I could lose my job, or not get hired for one if I'm looking."

 You can't lose your job because you filed bankruptcy. At least, that can't be the only reason an employer decides to let you go. Not only can your employer not check your credit report without written permission from you, but if you're fired from your job with bankruptcy as the sole cause, you can actually sue for discrimination according to a statute under the bankruptcy code. (Honestly though, if you went bankrupt and started playing online poker on company time, do you really think your boss would have you fired because of Chapter 13?) Unfortunately, the bankruptcy code statute doesn't extend to being passed over for a promotion or getting denied security clearance, especially if the job in either situation involves finance.

Getting hired for a job with a bankruptcy on your credit report is a slightly different story. Potential employers can't use your bankruptcy as the only reason for not hiring you, but they can make it one of their deciding factors. Be up front about your bankruptcy if you think a job search is coming down to you and someone else (and keep the online poker to a minimum when you're working)

• "I can get rid of all of my debt by filing bankruptcy."

 Think again. Up to your eyeballs in...student loans? Alimony? Child support? Debt incurred from fraudulent activity (well, hopefully not this last one)? None of these are covered by either Chapter 7 or 13 bankruptcy.

• "I can leave off some of my creditors when I file, right?"

Again, no. Like a store's going-out-of-business sale, everything must go. If you want to leave off those creditors because you want to pay them back yourself and get the debt taken care of, good for you. If you want to leave them off because you just can't do without those adorable Manolo Blahnik shoes at Neiman Marcus that you'd never be able to pay cash for...well, that sort of thing may be what got you to Chapter 7 in the first place. Regardless of your motives, any and all of your credit cards have to be included when you file bankruptcy, no ifs, ands or buts.

In short, bankruptcy may seem like a terrifying prospect, and indeed, it's definitely not something you should decide to do on a whim. Misconceptions abound for something seen as the end of the line for dealing with debt, and it's important to know what's true and what's not before you decide to file. Just know that (1) your credit isn't permanently ruined, but at the same time (2) be patient, because it will take a while to recover good credit. Also know that (3) bankruptcy won't cost you your job (by itself), and (4) all of your debt won't necessarily be gone for good, but (5) if you're thinking of leaving credit cards out when you file, no can do.