San Antonio Attorney

Different chapters are suitable for varying needs, but bankruptcy, essentially, gives assistance for debtors via the automatic stay on creditors' actions right after the filing. The automatic stay sees to it that all forms of harassment that debtors can be subject to, including letters, phone calls as well as other demands for payments, must stop. Ultimately, if all the requirements from the court are fulfilled in the genuine and open manner indicative of complete disclosure, several types of discharge are obtainable enabling the debtor to once again take up their lives or businesses once again.

Individuals weighted down by consumer debt, including credit card debt, can expect to have this debt wiped out as most credit card debt is unsecured. Debtors filing under chapter 7 are required to make their non-exempt assets available for liquidation to secured creditors. The debtor must give payment or transfer over the collateral. Unsecured creditors may not receive complete payment or, indeed, any payment. The bankruptcy court appoints a trustee who puts together a meeting with creditors and works with the disposal of assets to creditors in line with their status. At the end of the process the debtor normally receives a discharge; because of this the debtor is freed from the burdensome debt and able to start life afresh without anymore harassment by creditors.

Though chapter 7 is an approach predicated on wiping out debt, in addition there is a provision for reaffirmation of a specific debt assuming the debtor can demonstrate ample income. In this case the debtor makes arrangements with a creditor to keep hold of certain property. Chapter 7 does not mean the loss of all assets, so home assets and exempt property can generally be retained.

Other approaches to bankruptcy concentrate on reorganization as opposed to liquidation. These approaches call for the development of a repayment plan so the debtor can hang onto property or a business soon after reorganization, and under some cases consolidation, of debt. Chapter 13 is a reorganization approach that is suitable for people who have a steady income sufficient enough to keep their property and manage their mortgages given support and advice.

Once again the debtor receives relief on filing on account of the hold on creditor activity, and co-debtors are also protected from creditors. A repayment plan is developed during debt counseling, although unsecured creditors may receive little or no repayments based on the debtor's circumstances. After three to five years, the debtor is likely to obtain a discharge of debts.

Family farmers and fisherman are offered chapter 12 a similar method of managing debt but one which includes greater debt burdens such as those connected with operating these businesses.

Filing chapter 11 is a bankruptcy option that provides businesses with the an opportunity to stay in control and operate the business, in the long run, eliminating the debt burden. This option is most suitable for larger businesses as it is a complex, lengthy and potentially expensive business. But it is the option that provides the mechanisms businesses need. It has flexibility in that repayment plans can be modified as the business environment changes.

Whether an individual or a business, under most cases discharge means that the debtor is free from debts in existence prior to filing the petition.

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 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 it is for those who are truly unable to settle their debts. If you have considerable consumer debt or medical expenses have caused an unexpected debt load, chapter seven is likely to be one of the first options in that case. 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. Bankruptcy is not an option because I have a job

When your ready to file bankruptcy a job will open up more options for you.

3. Bankruptcy is not an option because I will lose everything I have worked for

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. Fear also causes people to make prolonged decisions when they think loosing all their property is imminent. 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.

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. 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. The people close to you probably will not know either.

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. Nonetheless, acting in this way could seriously hurt your bankruptcy process.

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

Doing so could be considered a fraudulent act. 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. 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. House loans do not need to paid off after filing bankruptcy

If you file you may avoid foreclosure on your house, but you must act quickly. When foreclosure proceedings have been started, consult a San Antonio bankruptcy attorney with past experiences in recovering these situations. It is possible. But, the loan will still have to be repaid.

10. Complete discharge of all debts

The extent of the discharge of debts varies and some debt cannot be discharged. An example is student loan debt, this 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 website, San Antonio Attorney. His site cover more in-depth information on San Antonio Bankruptcy, and credit card defense for residents of Texas.