Watch Out For These San Antonio Bankruptcy Myths
Do not be misled by myths that are associated with filing bankruptcy. 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
Most Importantly, the means test was set to weed out people with too much income from filing chapter 7, as its purpose is for those who are truly can not pay their debts. If you have considerable consumer debt or medical expenses have caused an unexpected debt load, chapter 7 is likely to be one of the first options in that case. Many attorneys offer means test calculators. Secondly, if you do not qualify for chapter seven, there may be other bankruptcy options that are available . 2. If you have a job bankruptcy is not an option When your ready to file bankruptcy a job will open up more options for you.
3. When you file for bankruptcy you loose everything you have earned
This is not true, but still people fear this situation causing them not to get help from a lawyer or file the paperwork. Fear also causes people to make prolonged decisions when they think loosing all their property is imminent. Property and asset loss can be minimized by consulting an attorney as soon as you recognize the problem.
4. Bankruptcy is not an option because I will lose my job.
First off, it is very unlikely that your employer would find out . More importantly, 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. My image will be torn if I file for bankruptcy
Bankruptcy is a public matter but a simple one is unlikely to draw attention unless you are a well known figure in San Antonio. The people close to you probably will not know either.
6. With bankruptcy looming, a spending spree on the credit cards will be absorbed in the process
A spending spree just prior to filing is ill-advised. The court may take the view that you behaved fraudulently by accruing more debt when you knew you were unable to repay it. 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. I can put my property in another person’s name to eliminate losses
This is a potentially fraudulent act. Though, 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
If you do not declare a debt it cannot be discharged, so doing this makes absolutely no sense at all.
9. When you file for bankruptcy home loans are wiped out
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 knowledge in recovering these situations. it may very well be possible. Though, you will still have to repay the loan.
10. Will be completely debt free after discharge
Depending on your debts it varies to which can and cannot be discharged. An example is student loan debt, this is difficult to get discharged unless undue hardship can be proved. Familial obligations, such as child support and alimony, cannot be discharged.
For more information on bankruptcy topics visit Jed Gibs San Antonio Attorney site. His site cover more in-depth information on San Antonio Bankruptcy, and credit card defense for residents of Texas.