' Bankruptcy Mistakes You Can’t Afford to Make - Law Offices of Robert M. Geller, P.A.
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Bankruptcy Mistakes You Can’t Afford to Make

bankruptcy mistakesBankruptcy is a complicated process because it involves many different aspects of the law. It can be difficult to understand all of the legal jargon and terminology associated with bankruptcy. Misunderstandings can lead to bankruptcy mistakes. This is why it is important to consult with an experienced bankruptcy attorney.

Types of Bankruptcy

There are two main types of bankruptcies that individuals can file for: Chapter 7 and Chapter 13.

People unable to pay any of their debt usually choose Chapter 7. In a Chapter 7 bankruptcy, the individual’s assets are sold to repay creditors.

People with regular income who can repay some of their debt usually opt for Chapter 13. In Chapter 13, the individual’s assets are not sold, but the individual is required to make monthly payments to a trustee. The trustee then uses the payments to repay creditors.

Bankruptcy can be a complicated process. Mistakes are common. What are five of the most frequent mistakes people make when filing for bankruptcy?

1. Not Hiring a Bankruptcy Attorney

When you’re deep in debt, the thought of hiring a lawyer may seem like an unnecessary expense.

However, if you want to give yourself the best chance of getting a fresh start financially, hiring an experienced bankruptcy attorney is essential. The bankruptcy process is complex and there are many ways to make mistakes that can cost you dearly down the road.

An experienced bankruptcy attorney will help you navigate the process and protect your rights.

2. Not Disclosing All of Your Assets

When you file for bankruptcy, you must disclose all of your assets, including bank accounts, investments, and property. Your case could be dismissed or you could be charged with perjury if you don’t.

3. Not Understanding the Difference Between Secured and Unsecured Debt

Secured debt is debt that’s backed by collateral, such as a home or car loan. Unsecured debt is not backed by collateral and includes credit card debt and medical bills.

It’s important to understand the difference between the two types of debt because they’re treated differently in bankruptcy. Filing without understanding which of your debts is dischargeable is one of the most common bankruptcy mistakes. In these cases bankruptcy fails to accomplish financial goals.

4. Incurring More Debt Before Filing for Bankruptcy

If you’re considering filing for bankruptcy, it’s important to stop using your credit cards and incurring more debt. If you continue to use your credit cards and rack up more debt, the court may consider this to be fraud and dismiss your bankruptcy case.

5. Not Taking Advantage of All the Bankruptcy Exemptions

You can only keep certain assets when you file for bankruptcy. Exempted assets vary from state to state. If you don’t take advantage of all the exemptions available to you, you may end up losing property that you could have kept.

Filing for bankruptcy is a big decision and it’s important to do it right. If you make any of the mistakes listed above, you could end up costing yourself a lot of money and set back your financial recovery.

If you’re considering filing for bankruptcy, contact experienced attorney to help you avoid bankruptcy mistakes. To learn more, contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can You File Bankruptcy on a Title Loan?

If you're struggling with debt and have a title loan, you may wonder if bankruptcy can help you escape that...
Read More

Will Bankruptcy Affect My Security Clearance?

When you're facing financial difficulties, the prospect of bankruptcy can be daunting. This concern is amplified if you hold or...
Read More

What is Involuntary Bankruptcy?

Bankruptcy is a legal process that allows individuals or businesses to resolve their debts under the protection of a bankruptcy...
Read More

Is It Bad to File Bankruptcy at a Young Age?

Filing for bankruptcy is often viewed as a last resort for those overwhelmed by debt. While it is a significant...
Read More

How Far Back Does the Bankruptcy Trustee Look?

Filing for bankruptcy is a complex process that requires full transparency and cooperation with the bankruptcy trustee assigned to your...
Read More

Can Bankruptcy Be Reversed?

Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of...
Read More

Can I Sell My House While in Bankruptcy?

Filing for bankruptcy can be a complex and stressful experience, especially when it comes to your significant assets like your...
Read More

Does Bankruptcy Clear Attorney Debt?

Filing for bankruptcy is a complex process that often requires the expertise of a bankruptcy attorney to navigate successfully. However,...
Read More

What to Ask a Bankruptcy Attorney?

Deciding to file for bankruptcy is a significant and often emotional step, and having the right legal guidance is crucial...
Read More

How Can I File Bankruptcy with No Money?

Filing for bankruptcy is often seen as a last resort for those overwhelmed by debt. It's a step that provides...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.536.4468

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 328-6667
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 274-9155

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 492-2663

Map And Directions