Statement Of Intention
One of the things that make filing for a bankruptcy case complex is the bulk of forms that a debtor must accomplish. These official bankruptcy forms allow the bankruptcy trustee and the bankruptcy court to determine the financial situation of a debtor. One of these forms is the Official Form 8, also known as the Statement of Intention, wherein the debtor specifies what s/he intends to do with the unexpired leases of personal property and secured debts which serves as debt collateral.
Where can you find the Statement of Intention?
Periodically, official bankruptcy forms are always updated to ensure that they are restructured according to the bankruptcy law changes. Recent versions of the official bankruptcy forms, including the Statement of Intention, can be found on the official website of the U.S. Court’s website, www.uscourts.gov.
Is filing for a Statement of Intention necessary?
Given the nature of this form, filing for a Statement of Intention is not really necessary to file with the rest of a debtor’s bankruptcy papers. However, if a debtor happens to have personal properties with unexpired leases or secured debts which served as debt collateral or both, then filing for a Statement of Intention should be in order. A debtor must file their Statement of Intention in the bankruptcy court within 30 days after the bankruptcy case is filed or prior to the scheduled creditors’ meeting; whichever may come first.
One of the downsides of not filing for a Statement of Intention is that the unexpired leases and secured debts cannot be protected with the automatic stay so the creditor can repossess the said assets and properties.
Is completing the Statement of Intention difficult?
Actually, the Statement of Intention is divided of just two parts: Part A which deals with the secured debts and Part B which is concerned with unexpired leases.
Under Part A of the Statement of Intention, the debtor must state his/her plans of whether or not they will give up or surrender properties to the creditor, redeem property, reaffirm debt, or take other course of actions.
Surrendering a property to the creditor allow the debtors to eliminate their personal liability to the said secured debt. In reaffirmation of the debt, the debtor becomes liable to his/her debt obligations regardless of the bankruptcy discharge, and gets to keep the property. When a debtor redeems the property, s/he simply buys it back from the creditor by paying a lump sum for the replacement value.
Under Part B of the Statement of Intention, the debtor must simply provide the bankruptcy court some necessary information about their unexpired properties, i.e. a car lease. These information can be the lessor’s name, a description of the leased property, an indication by the debtor of whether or not the leased will be assumed or rejected.
Sometimes, there are cases when a bankruptcy trustee takes the power to assume leases given its high value which in turn can generate a good profit for the bankruptcy estate.
To know and understand more about Statement of Intention, asking the help of a bankruptcy attorney is recommended for a better and more guided approach.