San Antonio Bankruptcy, Top 10 Myths To Avoid
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. The means test is the sole criteria for bankruptcy approval
Firstly, the means test is designed to prevent people with high disposable incomes filing chapter 7, as it is for those who are genuinely can not pay back their debts. If the debt you have is considerable amount or have incurred an unexpected debt load due to medical expenses, chapter seven may be the best option. To calculate this many attorneys offer the calculations for a means test. Additionally, if chapter seven is not an option for you, other bankruptcy options are likely to be more suited to your circumstances.
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. Filing for bankruptcy will cause you to loose everything
This is not true, but many people have this fear that causes them not to file or even speak to an attorney regarding their situation. Fear also causes people to make prolonged decisions when they think loosing all their property is immanent. The sooner you react and make proactive decisions such as seeking advice the greater the chance of minimizing asset loss.
4. Bankruptcy is not an option because I will lose my job.
It would be very unlikely for your employer to find out if you filed for bankruptcy. More importantly, there are federal and state laws on this subject in San Antonio. 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
Unless you are a prominent figure in San Antonio, a simple bankruptcy case is unlikely to draw attention of any kind even though it is a public matter. 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. This may cause the court to see the rapid spending as fraudulent . Best case scenario, the debt would still have to be paid and would not be included in the discharge. However, acting in this way could seriously hurt your bankruptcy process.
7. Property transfer will prevent its loss
This is a potentially fraudulent act. 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. If foreclosure proceedings have been started, consult a San Antonio bankruptcy attorney with experience in recovering these situations. it may very well be possible. But, you will still have to repay the loan.
10. All debts will be discharged
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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