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Bankruptcy is not a simple process, nor one people embark on without seriously compelling reasons. This means that even the smallest mistake during the petition filing or preparation can have a massive impact on your bankruptcy outcome and debt situation.
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You are required by law, when you file bankruptcy of any chapter, to disclose all of your assets. If you fail to disclose an asset, there can often be quite dramatic consequences, depending on the type of asset and circumstances.
It’s not uncommon to accidentally leave an asset off your bankruptcy paperwork. You might simply forget about something and only remember it later. If that happens, notifying the trustee is usually enough to fix the problem. Most of the time, as long as you’re honest, it’s not a big deal.
Sometimes, the trustee might discover an asset you overlooked and ask about it. As long as you explain the situation and cooperate, it’s typically resolved without serious issues.
However, if the missing asset was something that creditors should have received money from—like a property that could have been sold or an item of value—it could lead to complications if the trustee finds out later.
These situations can even come up years after your bankruptcy is closed. For example, you might file a lawsuit years later over something that happened before your bankruptcy. If you win the case or reach a settlement, the trustee may need to step in, since that money becomes part of your bankruptcy estate.
While these issues usually aren’t serious—especially if your attorney can protect certain assets—they do require careful handling. On the other hand, leaving out something significant, like a second property, could lead to more serious consequences.
Even misunderstandings about property ownership can create unexpected challenges. For example, I once worked with a client who thought he didn’t own any real estate. Later, we discovered his grandmother had added him and his siblings as co-owners of her home without his knowledge. It wasn’t a disaster—we just had to address it.
His family ended up buying back his share of the property, and its value was added to the bankruptcy estate. Since it was an honest mistake, the issue was resolved without further problems.
If you intentionally withhold information about an asset during bankruptcy, and it’s proven that you did so deliberately, the consequences can be severe. Federal laws come into play, which means you could face hefty fines—or even prison time in extreme cases. That’s why it’s absolutely essential to disclose all assets during the process.
As we discussed before, if an omission is unintentional and doesn’t cause harm (for instance, because the asset can still be addressed later), it’s unlikely to lead to serious trouble. However, it can create unnecessary inconvenience.
You can’t prepare for what you don’t know. Take the earlier example of the client with an ownership share in a property. If he had known about that share before filing, we could have discussed how it might affect his case and guided him accordingly. It might have even influenced his decision to file for bankruptcy.
While the client didn’t care about the interest in the home, the situation impacted a family member living there, who ultimately had to buy out his share. Had they been aware of this upfront, they could have planned differently.
This is why full disclosure is so important and why intentionally hiding assets is never worth the risk. Transparency not only protects you from legal trouble but also ensures you and your family can make informed decisions throughout the process.
Attorney Alec Solomita is a seasoned lawyer based in central Florida who has helped countless clients just like you navigate the difficult step of bankruptcy. With decades of experience protecting Florida residents and homeowners from debt, he knows exactly what mistakes to avoid and wants to make sure you never make them.
Ready to put your debts behind you and get a fresh financial start? Contact Solomita Law today to schedule an initial consultation.
When you’re overwhelmed with debt, it’s natural to want to avoid bankruptcy or ignore the situation entirely. However, waiting too long to take action can make things worse. If you ultimately need to file for bankruptcy, those extra months—or even years—of delay could complicate your case and make it harder to find the best solution.
While bankruptcy doesn’t need to be your first choice, consulting with a bankruptcy attorney early on is always a good idea. Timing matters, so even if you call just to gather information, understanding your options can prevent costly mistakes.
For example, if six months ago you were unemployed and deeply in debt, filing for Chapter 7 might have been a straightforward process. But if you wait and, in the meantime, you get married or your household income significantly increases, you could find yourself no longer qualifying for Chapter 7. Instead, you might be forced into a more complex and lengthy Chapter 13 case.
Another common issue is dealing with assets without proper guidance. For instance, selling your car or transferring it to someone else for little or no money could create problems. Selling the car could result in a loss of an asset you might have been able to keep, while transferring it could raise red flags for the trustee, who might view it as an attempt to commit fraud.
Bankruptcy is as much about timing as it is about numbers, and both can change quickly. What might have been the ideal moment to file in December could become much less favorable by June. Acting too late could limit your options, prevent you from filing under the Chapter that’s best for your situation, or make your case more difficult to resolve.
The key takeaway? Don’t wait until the situation becomes unmanageable. Speak with an attorney sooner rather than later to ensure you’re filing at the right time and under the right circumstances.
Filing for bankruptcy involves complex paperwork, and even small mistakes can cause big problems. That’s why we take care of the paperwork for you—to prevent errors that could delay your case or, worse, result in unnecessary costs or penalties.
The most common errors include:
One common mistake people make when completing their own bankruptcy forms is failing to list all their assets. This often happens because they don’t fully understand what’s being asked.
For example, you might think you don’t have any significant assets, but in reality, we all own assets. These can include everyday items like clothing, furniture, electronics, or even a vehicle. Some people may also have property or equity they don’t consider.
Every asset, no matter how small, needs to be listed and given a value. Failing to do so can lead to delays in your case, denial of your bankruptcy discharge, or even fines if significant assets are left out.
Some people overvalue their belongings when filling out paperwork. It’s easy to overestimate the worth of your possessions, especially when you’re emotionally attached to them. However, the value of an item isn’t based on what you paid for it—it’s based on what someone else would realistically pay for it now, considering wear and tear.
For example, that couch you bought a few years ago isn’t worth the full price you paid—it’s worth what someone might pay for it secondhand. Overvaluing assets can work against you, as it might require you to sell or surrender items that wouldn’t have been at risk otherwise.
I regularly volunteer at a bankruptcy clinic, where I’ve seen firsthand how these mistakes can hurt people. One common issue is individuals listing inflated values for items like furniture, resulting in them owing the court unnecessary fees or being required to forfeit property that could have been exempt.
It’s important to keep in mind that filing for bankruptcy is a detailed process, and mistakes can be costly. By working with a bankruptcy attorney, you ensure that your paperwork is accurate, complete, and filed correctly the first time. This can save you time, stress, and money while helping you achieve the financial relief you need.
Attorney Alec Solomita is a seasoned lawyer based in central Florida who has helped countless clients just like you navigate the difficult step of bankruptcy. With decades of experience protecting Florida residents and homeowners from debt, he knows exactly what mistakes to avoid and wants to make sure you never make them.
Ready to put your debts behind you and get a fresh financial start? Contact Solomita Law today to schedule an initial consultation.
One of the quickest ways to complicate your bankruptcy case is by intentionally racking up debt right before filing. While bankruptcy typically wipes out most credit card debt, making large or unnecessary charges shortly before filing can lead to serious trouble.
Under bankruptcy law, any significant debt incurred within 90 days before filing is presumed to be abusive. This “presumption of abuse” means the court automatically assumes you misused credit with no intention of paying it back.
For most people, this isn’t an issue if the debt is for necessities like gas, groceries, or car repairs. Credit card companies rarely challenge these types of charges. However, using your cards for luxury items, vacations, or large cash advances shortly before filing can create a major problem.
If the court determines that your spending was abusive, the debt in question won’t be discharged. This means you’ll still be responsible for repaying it, even after your bankruptcy case is resolved. Additionally, the credit card company could challenge your entire case, arguing that your bankruptcy filing is fraudulent.
The best way to avoid these issues is to be mindful of your spending in the months leading up to your bankruptcy. Stick to necessary expenses, and avoid making any large or questionable purchases. If you’re unsure about what might raise red flags, consulting a bankruptcy attorney can help you navigate the process safely and effectively.
No matter how difficult your situation feels, calling a bankruptcy attorney will never make things worse. The law is here to protect you, and a bankruptcy attorney can guide you through the process to access that protection. It might not fix everything overnight, but in most cases, reaching out for help is the first step toward improving your circumstances.
It’s normal to feel overwhelmed or unsure about where to start. Making the call might even bring up painful memories of how you got here—whether it’s due to losing a job, going through a divorce, or facing unexpected medical expenses. But you shouldn’t blame yourself or be too hard on yourself. Most importantly, you shouldn’t deny yourself a solution that’s available to help you move forward.
Nobody looks forward to calling a bankruptcy attorney. I understand that I’m not someone people are usually happy to talk to at first. But by the time we’re done, most clients feel relieved—not just because the process works, but because their situation improves. You’ll feel better when you can see a way forward, regain control, and take steps to fix your financial challenges.
For more information on Filing For Chapter 7 Bankruptcy In Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 305-5599 today.
Attorney Alec Solomita is a seasoned lawyer based in central Florida who has helped countless clients just like you navigate the difficult step of bankruptcy. With decades of experience protecting Florida residents and homeowners from debt, he knows exactly what mistakes to avoid and wants to make sure you never make them.
Ready to put your debts behind you and get a fresh financial start? Contact Solomita Law today to schedule an initial consultation.
