INSTRUCTIONS : STATEMENT OF FINANCIAL Affairs (Form B-7)
What is the Statement of Financial Affairs?
• In a bankruptcy filing, a statement of financial affairs represents the official form filled out by a debtor in which the debtor must answer, in writing, a series of questions concerning their financial affairs. The statement of financial affairs, found on the B-7 petition for a bankruptcy filing, will include questions concerning the debtor’s sources of income, the specifics regarding any and all transfers of property made by the debtor, and all information regarding any past lawsuits filed by past creditors.
• The statement of financial affairs helps the bankruptcy court determines specific factors regarding an individual bankruptcy case, such as the debtor’s ability to reorganize or repay their lenders. The statement of financial affairs must be filled out in a correct and accurate manner to avoid any penalties or legal situations. If you omit any information on this form or supply any incorrect financial information, it could negatively affect your bankruptcy filing.
What is on the Statement of Financial Affairs?
• The Statement of Financial Affairs lists 25 questions that will ask things relating to your total income for the past 3 years, any amounts you have paid to creditors, any lawsuits you have been involved in, all property that you own that is in possession of others, all expenses you have incurred to file bankruptcy and personal information regarding both you and your spouse.
• To file the statement of affairs you will need all of your financial and legal records from the past three years including your tax returns and any business records for companies you own any part of.