When filing bankruptcy in Riverside or San Bernardino, there are numerous schedules, statements, and petition that must be completed. While these documents are complex and require significant work, I recommend using a qualified bankruptcy attorney to file chapter 7 or chapter 13 bankruptcy. One of the documents that is required in all bankruptcy cases is the statement of affairs.
The statement of affairs is a summary of the debtor’s financial history before filing for bankruptcy and during the process of bankruptcy. It requires accurate figures of the assets and liabilities of the debtor. Recent financial transactions are also relayed to the trustee through the statement of affairs, such as payments to creditors and transfers of property. Other information to include is employment and business income, payments to creditors, repossessions, foreclosures, lawsuits, wage attachments, garnishments, property transfers, closed financial accounts, and safe deposit boxes. The following questions come from the statement:
Question 1: Disclosing any income from employment or operation of a business.
Question 2: Any income from the sale of stock or interest from a savings account.
Question 3: All transfers of property or money made to creditors within the 90 days immediately prior to filing bankruptcy.
Question 4: Any lawsuits, garnishments, attachments or other attempts.
Question 5: Any property that was foreclosed on or returned to the seller.
Question 6: Listing any assignments over the property.
Question 7-8: Gifts and losses of income.
Question 9: Any payments made to attorneys or other individuals for services related to debt counseling and bankruptcy.
Question 10: Any transfers made to someone else within the last 2 years.
Question 11: Any financial account, such as a bank account, closed within one year before the bankruptcy filing.
Question 12: Any safety deposit boxes owned within the previous year and their amounts.
Question 13: Any setoffs taken by a financial institution. A setoff is when a bank takes money from the debtor’s savings or checking account to pay off debt.
Question 14: Any property the debtor holds for another person.
Question 15: Any prior addresses over the last 3 years.
Question 16: Any spouse or former spouse over the last 8 years.
Question 17: Environmental violations by the debtor.
Questions 18-25: If the debtor is self-employed and owns a small business, the debtor must disclose all the financial information related to that business.
It is important that the statement of affairs be prepared correctly in order for the smooth administration of a bankruptcy. It takes little time to fill out the document and necessary to continue the process of bankruptcy. If you are considering bankruptcy and would like further clarification on these questions, contact our office today at (951) 801-5570.