List Of San Antonio Bankruptcy Myths
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 eliminates bankruptcy as an option
The means test was created as a preventative tactic for people filling chapter 7 that had high disposable income, as its purpose is for those in the situation where they definitely can not pay their debts. If the debt you have is considerable amount or medical expenses have caused an unexpected debt load, chapter seven may be the best option. Many attorneys offer means test calculators. In addition, if you do not meet the qualifications for chapter 7, other bankruptcy options are likely to be more suited to your circumstances.
2. Having a job disqualifies you from bankruptcy
Having a regular income means that you may have more options when filing bankruptcy.
3. Bankruptcy wipes out everything you have earned over the years
This is not true, but still people fear this situation causing them not to get help from a lawyer or file the paperwork. It is also a fear that causes people to delay the inevitable with attendant loss of property. If you are in financial difficulties, seek advice sooner rather than later to minimize property and asset loss.
4. If i file for bankruptcy it will cause me to loose my job.
It would be very unlikely for your employer to find out if you filed for bankruptcy. 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. My image will be torn if I file for
bankruptcyBankruptcy 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. 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. 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. However, it could have more serious consequences.
7. I can put my property in another person's name to eliminate losses
This is a potentially fraudulent act. Though, 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. 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. When foreclosure proceedings have been initiated, consult a
San Antonio bankruptcy attorney with experience in recovering these situations. It is 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 proven. Other examples of debt that cannot be discharged are alimony, and child support.
by: Audus Zinkman
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