Whether you’re trying to stop a foreclosure or get relief from credit card debt, bankruptcy can be a useful path toward a fresh start. However, Florida’s laws are strict and unique, so one wrong move could delay your case or even get it dismissed.
Florida has its rules about property exemptions, filing timelines and required documents. If you’re unfamiliar with these details, it’s easy to slip up. Therefore, it’s essential to understand what most people miss before submitting anything to the court.
What could go wrong?
Here are five common mistakes you’ll want to avoid:
- Using the wrong exemption laws: Florida requires you to use its exemption system, not federal ones. This affects what property you get to keep. Misunderstanding this can cost you your home, car or retirement savings.
- Transferring assets before filing: If you move money or property to someone else just before filing, the court may view it as fraudulent. These transactions are closely reviewed and could hurt your case.
- Failing the residency requirement: To use Florida’s generous homestead exemption, you must have lived in the state for at least 730 days before filing. Shorter stays may mean you don’t qualify, even if your home is in Florida.
- Not completing the credit counseling course: Everyone filing for bankruptcy must complete a court-approved course before submitting paperwork. Skipping it or doing it too late could result in a dismissal.
- Leaving out debts or assets: You must list all of your assets and all debts. Leaving something out, even accidentally, can lead to delays or penalties.
Filing bankruptcy in Florida is a major step with many moving parts. If you’re unsure about your next move, it may help to have legal guidance from someone who understands the system. They can help you avoid commonly seen mistakes and improve the chances of having a positive outcome.
