There are many misconceptions and myths surrounding bankruptcy. Some Florida residents who could have benefited from filing for Chapter 7 bankruptcy fail to do so based on misinformation. This blog will attempt to dispel at least some of those myths.
Some people are under the mistaken impression that once you file for Chapter 7 bankruptcy and receive a discharge, you will never be able to file again. Fortunately, that is not true. With some restrictions, a Chapter 7 bankruptcy can be filed any time after eight years from the date of discharge. In fact, you could file a Chapter 13 or Chapter 11 bankruptcy the day after you receive your Chapter 7 discharge.
You cannot transfer your car to a friend, sell your house to a sibling for one dollar or fail to disclose any assets to the court. The court requires full disclosure of your property, including any cash. If you fail to be completely forthcoming with the court, it could put your discharge in jeopardy and possibly even cost you your freedom. Furthermore, if you are on the deed or title to any property that “belongs” to someone else, legally, you own it as well. Therefore, it would be considered part of the bankruptcy estate.
The rules surrounding the filing of a Chapter 7 bankruptcy are there to protect you and your creditors. An attorney will be able to differentiate fact from fiction for you during your consultation. If you have any questions regarding an asset you currently own or disposed of within one year of your anticipated filing date, let your attorney know. Many Florida residents have been given a clean financial slate with which to rebuild their financial lives, but in order to get that fresh start, it is important to ensure that the court is convinced that you have provided it with full disclosure.