San Antonio Bankruptcy, Top 10 Myths To Avoid

June 6th, 2010 | Author: Audus Zinkman

Do not be misled by myths that are associated with filing bankruptcy. In the state of Texas, particularly San Antonio there are several areas of support and options for debtors.

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 it is for those who are truly can not pay off their debts. If the debt you have is considerable amount or the piling up of medical bills has added up to a considerable amount of debt, chapter 7 may be the best option. To calculate this many attorneys offer the calculations for a means test. Secondly, if you do not qualify for chapter seven, there may be other bankruptcy options that are available .

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

If you have a job it actually may give you more options when it comes time to filing for bankruptcy.

3. Bankruptcy wipes out everything you have earned over the years

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. It is also a fear that causes people to delay the inevitable with attendant loss of property. The sooner you react and make proactive decisions such as seeking advice the greater the chance of minimizing asset loss.

4. If i file for bankruptcy it will cause me to loose my job.

For a start, there is very little likelihood 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. 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

A spending spree just prior to filing is ill-advised. the court may see this spending in a short period of time as fraudulent if you knew you were unable to repay those bills. Best case scenario, the debt would still have to be paid and would not be included in the discharge. Nonetheless, it could have more serious consequences.

7. I can put my property in another person’s name to eliminate losses

This could be viewed as a fraudulent act by the courts. However, 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, but you must act quickly. If foreclosure proceedings have been initiated, consult a San Antonio bankruptcy attorney with past experiences in recovering these situations. It is possible. Though, you will still have to repay the loan.

10. All debts will be discharged

Depending on your debts it varies to which can and cannot be discharged. For example, student debt is difficult to get discharged unless undue hardship can be proven. Familial obligations, such as child support and alimony, cannot be discharged.

Need some more articles on someone that knows San Antonio Bankruptcy. Look no further and go to Audus Zinkman’s homepage called San Antonio Attorney

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San Antonio Bankruptcy, Top 10 Myths To Avoid

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