Statement Of Financial Affairs

When filing for bankruptcy, you’ll be asked to prepare several forms, each one designed to inform the court about your financial status and whether your petition should be granted. Statement of Financial Affairs is one such document, typically dubbed as Official Form 7.

Statement Of Financial Affairs

If you’re currently filing for a Bankruptcy petition, this Official Form is one of the most important aspects to study. It contains all your financial details, going back two years prior to the petition. Treatment is different between individual debtors and owners of businesses that operated that anytime in the last six years prior to bankruptcy. In this article, you’ll find out exactly what the Official Form 7 entails.

So what exactly does the Statement of Financial Affairs contain? Here are some of the most pertinent questions in the document:

  • Your year-to-date gross income as an employee or as a business owner, going back as far as two years.
  • Any other income you received aside from employment or business for the last two years.
  • Make a list of all the debts you’ve paid creditors for the past 90 days before the petition. The debts must be categorized in terms of business debts and consumer debts. Consumer debts must not exceed $600 while business debts must be no more than $5,000.
  • Corporations filing for bankruptcy must disclose payments going as far as one year instead of the requisite 90 days.
  • List any or all lawsuits you’ve been involved in for the last year.
  • Make a list of any or all properties that have been repossessed or returned in the last 365 days before filing.
  • Include any or all property assignments in the last 120 days made to creditors. This should also include all properties currently in the possession of a custodian. Typically, this question applies to corporations or businesses.
  • Any gifts or losses you might have incurred in the last year. Gifts and losses may include a number of specifics such as donations and gambling losses. This should include anything within the last year although gifts less than $100 in aggregate are not counted. Gifts to family less than $200 are also not included in the list.
  • Any casualties that occurred within the last year – including theft and fire damages.
  • Any payments you’ve made to professionals regarding bankruptcy, going as far back as one year.
  • Any property transfers made during the last two years. If you have a self-settled trust, this should also be disclosed with the requirement going back as far as 10 years.
  • Financial accounts opened, sold, or transferred in the last year.
  • Creditor setoffs made in the last 90 days.
  • Any property you own currently held by another person.
  • All the homes or addresses you lived in for the last three years.
  • If you lived in a community property state at anytime within the last 8 years, disclose the information.
  • Information regarding notices, violations, and lawsuits in connection with environmental laws.
  • Any or all information regarding your business during its operation. The last part of the Statement of.

Financial Affairs is usually reserved for business owners.

After disclosing all necessary information, you’ll be asked to leave your signature certifying the correctness of the data to the best of your knowledge. Although the Statement of Financial Affairs is something you can answer yourself, the input of a bankruptcy lawyer or an accountant is invaluable.