Filing for bankruptcy is a major decision that can greatly impact your financial future. Individuals have the legal right to defend themselves in bankruptcy court, which is known as filing pro se. However, bankruptcy law can be very complex. While you may want to go on this path to avoid attorney fees, it can later cause you more trouble than you can handle.
The bankruptcy laws in Florida contain unique rules and exemptions. If you make errors during the process, it can lead to unintentional loss of property, failure to get your debts discharged, or dismissal of your case altogether. While you may feel confident in your ability to handle the legalities, it is always better to talk to an attorney for Bankruptcy in Orlando.
Common mistakes to avoid when filing for bankruptcy pro se in Florida
- Â Filing the wrong type of bankruptcy.Â
One of the most common mistakes people make when filing for bankruptcy is filing the wrong chapter. In Florida, there are two primary forms of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 allows for the liquidation of non-exempt assets, while Chapter 13 facilitates a repayment plan over three to five years.
Each chapter suits different financial situations. This is why consulting with an attorney is important.
- Not understanding the exemptions.Â
Florida allows bankruptcy filers to protect their assets even with an overwhelming amount of debt. Not understanding these exemptions or making an error can cost you. If you are from Florida, you are lucky since they have generous homestead exemptions. If you have a house and file for bankruptcy, you can protect the full value of your residence.
When people file pro se, they are less aware of the exemptions they have. An attorney can clarify your doubts.
- Not filling out the bankruptcy forms properly.Â
Any legal procedure, including bankruptcy, requires the filling of various forms and providing documents. However, since pro se filers are not legal experts, they often fail to complete these forms accurately or entirely. Filing a form incorrectly can lead to costly delays and rejection of your form. It is important to double-check all your submissions.
- Not taking the required education courses.Â
Individuals filing for bankruptcy are required to complete mandated credit counseling and financial management courses. Skipping these courses or not submitting the necessary certificates can result in the dismissal of your case. This requirement is to ensure that individuals get the help they need to manage their finances better.
- Filing your taxes incorrectly.Â
Not filing your taxes on time or incorrectly can hinder your bankruptcy process. If a debtor has not filed their taxes for two years prior to filing for bankruptcy, it can further complicate an already complicated process. It will become an obstacle in the process. This is because your tax returns provide essential information about your income and assets.
- Acquiring more debt just before filing.Â
Some filers believe that it is okay for them to gather more debt right before filing because it is going to be discharged anyway. Do not make this mistake, as it might ruin your chances of a successful bankruptcy. New debts right before filing are viewed negatively by the court. Avoid any large purchases or unnecessary purchases.
- Not managing your assets properly.Â
If you transfer your assets or sell them at way less value than their current market price, it can be considered fraudulent. Many individuals attempt to protect their assets and property from liquidation by moving them out of their name or selling them cheaply. The court closely scrutinizes these moves, and such actions can lead to the dismissal of your case.
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Avoid bankruptcy mistakes!
While filing for bankruptcy can be complicated for everyone, pro se filers have a much harder time. If you are considering bankruptcy, hire an attorney in Florida today!
