Do not be misled by myths that are associated with filing bankruptcy. 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. Bankruptcy is not an option because of the means test
Firstly, the means test is designed to prevent people with high disposable incomes filing chapter 7, as it is for those who are genuinely unable to pay their debts. If you have considerable consumer debt or have incurred an unexpected debt load due to medical expenses, chapter 7 may be the best option. Many lawyers offer means test calculators. Secondly, if you do not qualify for chapter seven, other bankruptcy options are likely to be more suited to your circumstances.
2. Bankruptcy is not an option because I have a job
Having a regular income means that you may have more options when filing bankruptcy.
3. Bankruptcy is not an option because I will lose everything I have worked for
This is not true, but it is a fear that stops many people from filing or even discussing their situation with a lawyer. 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. Bankruptcy is not an option because I will lose 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. Under federal law, it is illegal to discriminate against a bankrupt person; therefore, this should not be an issue.
5. Bankruptcy is not an option because I will be exposed to scandal
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. 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 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. However, it could have more serious consequences.
7. Property transfer will prevent its loss
This is a potentially fraudulent act. 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. 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 initiated, seek the advice of a San Antonio bankruptcy attorney with experience in recovering these situations. It is 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. 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.