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Do not be misled by myths that are associated with filing bankruptcy. 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

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 really can not settle their debts. If you have considerable consumer debt or have incurred an unexpected debt load due to medical expenses, chapter seven 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.    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. 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, there are federal and state laws on this subject in San Antonio. Under federal law, it is illegal to discriminate against a bankrupt person; therefore, this should not be an 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 can spend as much as I want since bankruptcy will take away the debt

Avoid going on any type of spending spree prior to filing. 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. Nonetheless, it could have more serious consequences.

7.    You can transfer your property to avoid losses

This could be viewed as a fraudulent act by the courts. But, the debtor can still protect property that they currently hold. 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

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, but you must act quickly. When foreclosure proceedings have been initiated, consult a San Antonio bankruptcy attorney with past experiences in recovering these situations. it may very well be possible.  Though, 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. For example, student debt is difficult to get discharged unless undue hardship can be proved. Familial obligations, such as child support and alimony, cannot be discharged.

More information can be found at Nate Kuzo website, San Antonio Attorney.  His site cover more in-depth information on San Antonio Bankruptcy, and credit card defense for residents of Texas.

Tags: San Antonio Attorney, San Antonio Bankruptcy, San Antonio Chapter 7