This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Filing for bankruptcy can help you get relief from overwhelming bills and give you a real chance to fix your financial life. But even small mistakes in your bankruptcy filing can lead to delays, loss of property, or worse—the court might dismiss your case.
Understanding what to avoid before you start the process can save you time, money, and unnecessary stress. Many people make costly errors because they don’t fully understand the rules or try to go through the process without legal help.
Fleysher Law Bankruptcy & Debt Attorneys helps people avoid these problems by guiding them through every step of the bankruptcy process. Whether you’re filing because of medical debt, personal loans, or missed payments, we’ll make sure your case is done the right way. Our goal is to protect your financial future, make the process smoother, and help you avoid mistakes that could put your case at risk or increase your burden.
Trying to handle a bankruptcy filing on your own may seem like a way to save money, but in many cases, it leads to more problems than it solves. Bankruptcy law is detailed, and the required forms must be completed correctly and filed on time.
One mistake in your bankruptcy paperwork can delay your case, reduce your protection, or even lead to a dismissal. Many people filing without legal help don’t realize they must disclose all their bank accounts, assets, and financial history, which the court reviews carefully.
Without a knowledgeable bankruptcy attorney, you risk missing legal exemptions that can help protect assets like your car, retirement accounts, or personal property. You also may not understand which debts are dischargeable or how to meet the rules of the bankruptcy court. These risks are avoidable with proper legal guidance.
The bankruptcy process involves strict deadlines, and the court expects you to provide detailed information about your financial affairs, including your income tax returns, retirement funds, financial accounts, and even prior income.
If you miss a required filing date or leave out necessary documentation like bankruptcy schedules or creditor lists, your case could be delayed or dismissed. The bankruptcy trustee and bankruptcy judge rely on full and accurate information to process your case.
Late or incomplete filings can also prevent you from receiving a bankruptcy discharge, which means you might still owe those debts even after completing your case. These deadlines are not flexible, and the court rarely gives second chances if mistakes happen because of missing or incorrect paperwork.
Working with an experienced bankruptcy attorney ensures that your documents are complete, accurate, and filed on time. Your lawyer will review your entire financial situation, help identify which debts to include, and advise you on how to handle retirement accounts, tax obligations, and property values. They’ll also make sure you meet all requirements, from credit counseling to attending hearings, and help you avoid actions that could harm your case.
An attorney will also ensure your exemptions are applied correctly, helping you avoid losing valuable assets. By guiding you through every step, your lawyer increases the chances of a smooth bankruptcy process, reduces stress, and helps you reach your goal of long-term debt relief without added setbacks.
When filing for bankruptcy, the court requires full honesty about your money, financial accounts, and property. You must disclose all bank accounts, retirement funds, asset holdings, and even past gifts or transfers to family members.
This includes any personal property, business interests, or prior income payments. Leaving out any part of your financial history, on purpose or by mistake, can be treated as bankruptcy fraud. The court expects your bankruptcy schedules and disclosures to reflect your complete financial affairs.
If you hide assets, lie about your financial situation, or submit false forms, you risk more than just losing your case. Your bankruptcy case could be dismissed, meaning you’d lose legal protection from creditors, and your debts would remain unpaid.
In serious cases, the court may refer the matter to the United States Trustee’s Office, and criminal charges may follow. A person who lies in a bankruptcy petition can face fines, jail time, and loss of the chance ever to get those debts erased.
The bankruptcy trustee reviews your documents and has tools to investigate your financial background. They can request bank statements, tax records, and property records. They may even contact employers or check your credit report for hidden loans or missing information.
If they discover undisclosed information, they can request that the court deny your discharge, take legal action, or refer you for investigation. Hiding anything is never worth the risk.
Charging up credit card purchases or taking out personal loans shortly before filing for bankruptcy may be flagged as fraud. The court may think you never intended to pay those debts and used bankruptcy to wipe them out unfairly.
Using credit for luxury items, travel, or entertainment within 90 days of filing is especially risky and may not be discharged.
If you bought expensive items or withdrew large cash amounts before your bankruptcy filing, creditors can object. These charges might not be discharged and could become personal liabilities again. It’s better to stop using credit and loans if you’re considering bankruptcy. Talk to a lawyer before making any large transactions.
Avoid applying for new debt, transferring money, or making big financial decisions before filing. This includes moving funds between accounts, repaying family members, or changing ownership of property.
These actions can complicate your case, delay the process, or lead to serious legal consequences. Make no financial moves unless your attorney advises it.
If you transfer a valuable asset, like a car, property, or cash, to someone close to you before filing bankruptcy, the court may treat it as a preferential transfer or fraud. The law assumes you were trying to hide it from your creditors, even if you meant no harm. Giving or selling property to family members before filing is risky.
The bankruptcy trustee can undo these transfers. They can sue the person who received the item and bring the asset back into the bankruptcy estate. If the transfer was recent, the risk is even higher. This applies even if you gave the property away or sold it for less than fair market value.
You must report all asset transfers, including gifts and sales, in your bankruptcy paperwork. The court wants to see any changes in your financial situation and asset ownership. Being honest up front helps you avoid accusations of fraud and gives your attorney the chance to explain or defend the transfer.
If you fail to list a debt in your bankruptcy petition, that debt may not be erased. The creditor may keep trying to collect, and the protection of bankruptcy won't apply. This can leave you still owing money on a loan or bill even after your discharge.
Many people forget to list informal debts like loans from family members or past-due personal arrangements. But even if the debt is small or between people you trust, it must still be listed. The court requires full disclosure of everyone you owe, not just unsecured creditors like credit cards or banks.
A complete, honest list of your debts gives the court a full picture of your situation. This allows the trustee to fairly handle your case and helps you avoid legal problems. It also improves your chances of a full bankruptcy discharge that gives you a clean slate.
Choosing the wrong chapter can hurt your case. Chapter 7 is often used when you have little income and can’t afford repayment. Chapter 13 works better if you have steady income and want to keep property like your home or car. The choice depends on your income, asset holdings, and goals.
If you pick the wrong chapter, you might lose protection, face delays, or even lose assets you wanted to keep. The bankruptcy court may dismiss your case or require you to start over. This increases costs and causes more financial stress at a time when you need help most.
A knowledgeable bankruptcy attorney can evaluate your debts, income, and goals. They’ll compare the benefits and drawbacks of each chapter and help you make a smart choice. Filing under the right chapter increases your chances of success and reduces risks to your property and financial future.
Before filing, you must take a credit counseling course from an approved agency. This is required by law and must be completed within 180 days before you file. Without it, the court won’t accept your case. This course explains alternatives and helps you understand the bankruptcy process.
After filing, you must complete a financial management course to receive your discharge. This course teaches budgeting, saving, and how to avoid future financial difficulties. If you skip it, your case could be closed without a discharge, leaving you stuck with your debts.
These courses are required in every case. Failing to complete them on time can result in your bankruptcy case being dismissed. That means you lose protection from debt collectors, and creditors can sue or garnish your wages again. Stay on top of deadlines and get help if you’re unsure.
Waiting too long to file can make things worse. Creditors may start lawsuits, get wage garnishments, or begin foreclosure before you act. Once these actions start, they are harder to stop or reverse. Some people wait until they’ve already lost property or faced judgments in court.
Filing early can stop collection efforts before they start. Bankruptcy creates an automatic stay, which stops lawsuits, calls, and wage garnishment. If you’re already dealing with ongoing legal actions, filing may protect your income and property from being seized. Acting sooner can preserve more of what you own.
Getting legal advice early helps you understand your rights and options. A lawyer can help you protect income, avoid risky transfers, and pay bills in the right order. They’ll also explain how filing sooner could lead to better results and help you preserve more assets.
1. Do I Need to File Income Tax Returns Before Filing for Bankruptcy?
Yes. You must file income tax returns for recent years before the court accepts your case. If you fail to file taxes, your case may be delayed or dismissed. The trustee uses your tax returns to review your current and past earnings, assess accuracy, and identify any potential priority tax claims that may affect how your debts are handled.
2. What Happens if I Ran a Business in the Past or Still Do?
If you have previous and ongoing businesses, you must disclose them during your bankruptcy. This includes any income earned, assets held, or expenses paid through those businesses. The court needs to evaluate all of your financial situation, not just personal finances, and hiding this information can lead to severe consequences.
3. Can I Repay Family Members Before I File for Bankruptcy?
You should not try to repay family members right before filing for bankruptcy. The trustee may consider it a preferential transfer and could demand the money back to pay creditors equally. Even if your intentions are good, these types of payments can create serious legal complications.
4. Will I Lose Everything I Own if I’ve Gambled or Sold Assets?
Not necessarily, but you must report any gambling property transfers closed, recent sales, or major purchases. If you’ve been selling assets, especially to friends or relatives, the trustee may reverse those deals. Transparency is key; failing to disclose these actions can trigger an adversarial proceeding or put your discharge at risk.
5. Are My Disability Benefits and Retirement Protected in Bankruptcy?
Most disability insurance payments and qualified retirement savings accounts are protected under federal and state exemption laws. However, you must still disclose them. While they’re usually safe, omitting them from your paperwork could raise questions and delay your case.
Filing for bankruptcy is a serious step, but it can be the smartest way to take control of your future and move past financial stress. Fleysher Law Bankruptcy & Debt Attorneys helps clients across Florida avoid common mistakes that cause delays or risk losing important property. Whether you’re dealing with medical debt, personal loans, lawsuit settlements, or pressure from creditors, we guide you through every step of the process with care and precision.
Our legal team understands how overwhelming debt can feel. We’re here to offer trusted advice, prepare complete and accurate filings, and fight to protect your home, wages, and rights. We help you make smart choices before, during, and after the case, so your financial future is stronger and more secure.
Call today for a free consultation with a trusted bankruptcy lawyer who will help you avoid costly errors and start fresh with confidence.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
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