Common Errors to Avoid in a Bankruptcy Case
Bankruptcy cases are extremely complicated, and business owners and individual debtors alike often make errors when they decide to handle their bankruptcy cases on their own. Depending on the error, a mistake in a bankruptcy case can cause delays and problems, and in some circumstances, a mistake can have much more serious consequences. Indeed, some mistakes can result in allegations of bankruptcy fraud. To ensure that you do not make a mistake in your bankruptcy case, it is important to work with a West Palm Beach bankruptcy lawyer on your case from the start. In the meantime, our attorneys can provide you with more information about some of the most common errors made in bankruptcy cases that you should know about in order to avoid them.
Common Error: Making the Assumption That All of Your Debts Are Dischargeable Without Checking with a Lawyer
It is important to talk with an attorney about the debts you have and whether they are dischargeable. While many types of consumer debts can be discharged, not all types of debts are dischargeable. Indeed, under the US Bankruptcy Code, there is a category that lists “exceptions to discharge.” Commonly non-dischargeable debts include family support debts and certain kinds of tax debts. While student loans do require an extra process for discharge, they can be discharged in a bankruptcy case.
Common Error: Giving Non-Exempt Assets to Friends or Family Members Before Filing
Giving away non-exempt assets prior to your bankruptcy filing can cause significant problems. To be clear, you cannot give away assets in order to avoid having them liquidated in a bankruptcy case. Doing so, even if you do not intend to commit fraud, can lead to allegations of fraud.
Common Error: Leaving Out Information About Your Assets
Inputting incorrect information into a bankruptcy filing or any required schedules can cause significant problems, as can omitting information. At worst, omitting information can cause delays in your case, and at worst it can result in concerns about bankruptcy fraud. You must provide full and complete information in all of the materials you provide to the bankruptcy court.
Common Error: Assuming You Will Lose All Assets in a Liquidation Bankruptcy
Many people assume they will lose all of their property when they file for a Chapter 7 bankruptcy, but liquidation bankruptcies do not involve the liquidation of all personal assets. To be sure, many assets are “exempt” under Florida law.
Common Error: Running Up Credit Card Bills Before Your Filing
Charging a significant amount of services or products leading up to your bankruptcy filing — with the anticipation of having those debts discharged — can result in concerns about fraud. You should only make charges for necessities. Otherwise, the charges could be considered “luxury” charges that are not only non-dischargeable but can amount to presumptive fraud.
Contact Our West Palm Beach Bankruptcy Attorneys Today
Given the complexity of US bankruptcy law, it is easy to make a mistake if you do not have an experienced West Palm Beach bankruptcy lawyer at Kelley, Fulton, Kaplan & Eller on your side. If you have any questions about consumer bankruptcy or want to get started on a bankruptcy filing, contact us today for assistance.
Source:
law.cornell.edu/uscode/text/11
