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.
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?
Chapter 11 Bankruptcy Attorney
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.
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Is there a question lurking here? The attorney is correct in filing an amendment.
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