Most Common Myths On San Antonio Bankruptcy

When considering bankruptcy avoid the following myths. In San Antonio, as in the whole of Texas where both federal and state regulations operate, debtors have a lot of support and options.

1. Bankruptcy is not an option because of the means test

Firstly, the means test is designed to prevent people with high disposable incomes filing chapter 7, as it is for those who are genuinely unable to pay off their debts. If you have considerable consumer debt or the piling up of medical bills has added up to a considerable amount of debt, chapter 7 may be the best option. Many attorneys offer means test calculators. Additionally, if chapter seven is not an option for you, other bankruptcy options are likely to be more suited to your circumstances.

2. You do not qualify for bankruptcy if you have a job

Having a regular income means that you may have more options when filing bankruptcy.

3. Filing for bankruptcy will cause you to loose everything

This is not true, but it is a fear that stops many people from filing or even discussing their situation with a lawyer. Fear also causes people to make prolonged decisions when they think loosing all their property is immanent. Property and asset loss can be minimized by consulting an attorney as soon as you recognize the problem.

4. I cannot file for bankruptcy because I will loose my job.

For a start, there is very little likelihood that your employer would find out. Also consider, San Antonio is subject to both federal and state law. Federal law states that if a person is bankrupt you cannot discriminate against them. So this should be a non issue.

5. Bankruptcy is not an option because I will be exposed to scandal

Bankruptcy is a public matter but a simple one is unlikely to draw attention unless you are a well known figure in San Antonio. Even people close to you need not know.

6. With bankruptcy looming, a spending spree on the credit cards will be absorbed in the process

Avoid going on any type of spending spree prior to filing. This may cause the court to see the rapid spending as fraudulent . At the very least, this would mean that the debt would not be included in the discharge and still have to be paid. Still, acting in this way could seriously hurt your bankruptcy process.

7. You can transfer your property to avoid losses

This could be viewed as a fraudulent act by the courts. However, the debtor can still protect property that they currently hold. It is wise to act honestly because prior to filling all your actions will be looked over closely.

8. It is possible to declare only some debts

Undeclared debts cannot be discharged, so this just does not make sense.

9. House loans do not need to paid off after filing bankruptcy

Filing may save your house from foreclosure, if you have acted quickly enough. In the event that foreclosure proceedings have been started, seek the advice of a San Antonio bankruptcy attorney with experience in recovering these situations. it may very well be possible. But, the loan will still have to be repaid.

10. Complete discharge of all debts

The extent of the discharge of debts varies and some debt cannot be discharged. An example is student loan debt, this can only be discharged if you can prove undue hardship. Familial obligations, such as child support and alimony, cannot be discharged.

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Acceptions:

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