Attorney forgot to list homestead exemption in schedule C. It was included in Sched A & D

Asked over 1 year ago - Tampa, FL

Human error by atty's paralegal, my home has 100% exemption in Florida was not included in Sched C.
Sched titled "Chapter 7 individual statement of intention" it checked that property will be "retained", checked "I intend to reaffirm the debt", but THEN checked property is NOT claimed as exempt. I assume they used software.
She based homestead value on the tax roll value of $275K, real market value is $500K and listed mortgage at $425K. I noticed the error of market value, she said it did not matter due to FL 100% home exemption. Only $2K personal prop exemption claimed, obviously is not like we benefited from not claiming home exempt. BTW, my mortgage is current so is not like I want abandon. Now trustee filed motion to hire broker to sell my home! Atty is now filing amended schedules.

Additional information

I question whether trustee will object to amended schedules and have the judge side w/ him. If that were the case, then what? Fact of the matter is that my financial situation is now worst than when I filed. Don't attorneys carry errors and omissions insurance?

Attorney answers (3)

  1. David Lloyd Merrill

    Pro

    Contributor Level 15

    4

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    chosen by asker

    Answered . Amending is the right answer - omitting the homestead was an error (based upon the facts you recite) but it should be correctable. What is unclear is the affect of amending will be on your personal property - not claiming a homestead exemption can provide you significant benefits in terms of a "wild card" exemption of $4k per debtor (if you are married and filing jointly that could be two wild cards) so be sure what the net affect is. Candidly, it may be that a conversion to a Chapter 13 may be in your future depending upon your situation.

    And make sure the error made was just that and you are working with competent counsel. Correctable human error is one thing. Someone not so familiar with the issues you are now facing is quite another.

    Good luck!

  2. Kevin Christopher Gleason

    Pro

    Contributor Level 16

    1

    Lawyer agrees

    Answered . Is there a question lurking here? The attorney is correct in filing an amendment.

    Posting questions anonymously and receiving general answers do not substitute for consulting with an attorney... more
  3. Michael Glynn Busby Jr.

    Pro

    Contributor Level 19

    Answered . Depending on your judge, you may need to file a motion to amend the schedules or approach the lawyer about buying your house from the trustee.

Related Topics

Bankruptcy

Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.

Chapter 7 bankruptcy

Chapter 7 bankruptcy is a form of bankruptcy where your debts are canceled, but some of your assets are sold to pay off part of your debt.

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