How to Avoid Common Errors in Personal Bankruptcy Cases
When you are considering a personal bankruptcy filing in South Florida, it is critical to take steps to avoid some of the most common errors that can quickly derail a bankruptcy case. Mistakes that consumers make when filing for bankruptcy can range from relatively minor errors that end up costing them time and money, to more serious mistakes that can result in allegations of bankruptcy fraud. The best way to avoid common errors in a bankruptcy case is to work with an experienced bankruptcy lawyer in West Palm Beach from the very beginning — before you even begin making official plans to file for bankruptcy. Yet even if you have started to take steps toward a bankruptcy case, there remain important things to consider to avoid errors. Consider the following information from the attorneys at Kelley, Fulton, Kaplan & Eller.
Properly Determine Your Eligibility Before You File
For an individual to be eligible for Chapter 7 bankruptcy, that individual either must have an average income over the last six months before filing that is sufficiently below the Florida state median, or you must be able to pass the “means test.” The means test is another way of proving that your income and assets are low enough that a liquidation bankruptcy would not be abusive. It is necessary to determine your eligibility before you take steps to file because if you are not actually eligible, you can lose significant time and money.
Determine the Dischargeability of Your Debts
Before you file for any type of individual bankruptcy, but especially for Chapter 7, you will want to ensure that all or most of your debts are dischargeable. Under the US Bankruptcy Code, there are certain types of debt that are listed as exceptions to discharge. If the majority of your debt cannot be discharged, a bankruptcy filing is likely not logical for you. But if you do not make this determination ahead of time, you could go through a large portion of the bankruptcy process, losing time and money, without realizing that you will not actually be eligible for a discharge at the end.
Keep Track of Key Dates on the Bankruptcy Timeline
Certain steps in every bankruptcy case must occur before you actually file your bankruptcy petition, and others must occur at specific points in time in relation to the date of your filing and the 341 meeting of creditors. If you do not keep track of key dates on the bankruptcy timeline, you could risk missing a requirement that could impact your entire bankruptcy case.
Never Omit Assets or Property
You will need to provide a full accounting of your assets and debts, and from the accounting you will be able to show that certain property is exempt. But it is critical that you avoid omitting or attempting to hide assets — not only can you lose the ability to have protection under US bankruptcy law, but you could ultimately face bankruptcy fraud charges.
Contact a West Palm Beach Bankruptcy Attorney Today
The best way to avoid common mistakes in a personal bankruptcy case is to work with one of the experienced West Palm Beach bankruptcy lawyers at Kelley, Fulton, Kaplan & Eller. Contact us today to have your questions answered and to get started on your bankruptcy filing.
Source:
law.cornell.edu/uscode/text/11
