When considering bankruptcy avoid the following myths. Within San Antonio both federal and state regulations operate in Texas, to help support debtors and provide options for relief.
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 in the situation where they genuinely unable to pay for 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 is likely to be one of the first options in that case. To calculate this many attorneys offer the calculations for a means test. Additionally, if chapter seven is not an option for you, there may be other bankruptcy options that are available .
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. 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 . Also consider, 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. I cannot file for bankruptcy because it will hurt my reputation
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. Even people close to you need not know.
6. I should spend as much as I can since filing for bankruptcy will wipe out all those debts
Avoid going on any type of spending spree prior to filing. the court may see this spending in a short period of time as fraudulent if you knew you were unable to repay those bills. At the very least, this would mean that the debt would not be included in the discharge and still have to be paid. Still, serious consequences could develop from these actions.
7. Property transfer will prevent its loss
This could be viewed as a fraudulent act by the courts. But, property still held by the debtor can frequently be protected. It is best not to act precipitously as all actions involving money and property prior to filing will be scrutinized rigorously.
8. You have the option to only declare 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
If you file you may avoid foreclosure on your house, if you have acted quickly enough. When foreclosure proceedings have been initiated, find a San Antonio bankruptcy attorney with knowledge in recovering these situations. it may very well be possible. But, you will still have to repay the loan.
10. Complete discharge of all debts
Depending on your debts it varies to which can and cannot be discharged. For example, student debt can only be discharged if you can prove undue hardship. Other examples of debt that cannot be discharged are alimony, and child support.
If you found this information helpful more information by Lindra Pedo can be found at his site, San Antonio Attorney . His site cover more in-depth information on San Antonio Bankruptcy, and credit card defense for residents of Texas.
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