Bankruptcy protection gives debtors a fresh start. But before filing, it is important to know the common mistakes people make during the process. Not Being Truthful The means test is the first step to filing bankruptcy. It consists of several financial questions that will determine if you can pay your creditors. If you don’t mention all of your income or assets, your case could be dismissed. A bankruptcy lawyer can help you make sure everything is presented correctly. Not Listing Pending Lawsuits If you have filed a lawsuit against someone for any reason, you must list it as an asset in your bankruptcy paperwork. Not Mentioning Cars or Car Loans If you have a car for which you are still paying the loan, you have to list it as a liability. If you own the vehicle outright, it gets listed as an asset. Should you fail to do this or you transfer the car to a family member shortly before filing for bankruptcy, you could hurt your case. Running up Your Credit Card Balance This is a bad idea because the creditor will look over the charges upon receiving the bankruptcy notification. If the creditor believes you purposely ran up your balance before filing, he has the legal right to challenge your request to eliminate the balance. Not Mentioning Creditors You have to list all creditors in your bankruptcy filing. If you don’t, it can lead to your case getting dismissed. Transferring Assets Transferring assets for the sole purpose of protecting them from being taken is illegal. There are legal ways you can protect assets that could potentially be at risk. If you would like to learn more about bankruptcy, please contact us. As bankruptcy lawyers, we will determine if filing for Chapter 7 or Chapter 13 is right for you.

• disability, workers’ compensation and unemployment benefits,
• Social Security and Veterans’ benefits,
• a vehicle worth up to $1,000,
• “health aids,” such as wheelchairs, portable commodes, etc.
• alimony and child support needed by you, or by dependents, to pay basic living expenses,
• life-insurance “cash surrender value,”
• pre-paid funeral contract deposit,
• police/fire/state employees’/state trooper pensions,
• personal property worth up to $1,000,
• all of your weekly wages (for household heads) up to $500–either paid, or still due you–and existing in your bank accounts for up to 6 months.

Tools–or equipment–you’ve used to ply your “trade,” however, are not exempt. A Tampa Chapter 7 lawyer can fully explain this rule. Florida’s “non-dischargeable debts”–or debts you will have to repay regardless of filing Chapter 7–include:

• alimony and child support
• debts accrued through the criminal act of “fraud,”
• income taxes you’ve owed the last 3 years (plus all other “back” taxes),
• debts for personal injuries–and deaths–you caused by driving drunk,
• court fines (i.e., for traffic tickets), and restitution for criminal acts,

Your Tampa Chapter 7 lawyers will apprise you of other non-dischargeable debts, and how you can repay them. If you don’t want your trustee to sell your home, furniture and vehicles (secured with loans) during the Chapter 7 process, you can sign a “Reaffirmation Agreement,” which means you must keep paying on these loans. If you do “reaffirm” these obligations, however, the Court will not permit you to “wipe them out” for 8 more years. And, before you “reaffirm,” you must make these debts “current” by catching up on payments. In order to “reaffirm” some debts and liquidate others, consult your Tampa Chapter 7 lawyers. You may have 60 days from the time you sign a Reaffirmation Agreement to “set it aside (stop it).” Contact us for Tampa, Florida, expert representation in your Chapter 7 filing.