The paperwork during bankruptcy is not an easy affair and there could be about 70-100 documents that you may require while filing bankruptcy. These documents shall comprise a statement of financial affairs, schedules, supporting documents, and others. The Statement of Financial Affairs is an important document that comprises of many parts and deals with the financial crux of the debtor. Any information which is not provided in the schedules is more likely to be provided for in the SOFA. This is a mandatory form and cannot be skipped. Know more about the bankruptcy procedures in depth at https://www.recoverylawgroup.com/bankruptcy/.
Characteristics of SOFA
The SOFA is like any other government form that has questions and boxes for answers. The SOFA form is different for individuals and businesses. The form requires an answer from each spouse if a couple is filing for bankruptcy and filling out SOFA. SOFA is required for filing bankruptcy via chapters 7,11 or 13. The form appears simple to view but it is essential to provide all the information relevant to the case accurately and completely. The final part of the form asks for a declaration to ascertain a penalty or perjury in case the information provided is incorrect.
Information required in SOFA
The following are the questions or information required while filling up SOFA-
- Marital status
- Current address and previous residences during the last 3 years
- Did you live with your spouse in a community property state/territory in the last 8 years? Community property/states include states like AZ, CA, ID, LA, NM, Puerto Rico, TX, Washington, and WI.
- All sources of income, rent, dividends, interest, etc., that add up to your household income
- The sources of income and expenses could be from the last 3 years
- Items of interest can be alimony, child support, social security or pension income, unemployment or other federal benefits, lawsuits, income tax refunds, gambling, or lottery winnings, etc.
- Any payments made to a lender in the recent 90 days before filing for bankruptcy need to be disclosed in this schedule
- Every payment above $600 in a cumulative sense must be disclosed under this part
- Any payments made to relatives, or institutions as full or part of debt settlement should also be disclosed here
- Any debt which had a co-signer, or a co-debtor should be listed here too
- Any transaction, settlement of debt or transfer of assets to a known person or related person referred to as ‘insider’ during the last year must be disclosed here
- Information about legal actions that the debtor might have been party off in the last 3 years
- Information about historic bankruptcy filing especially if you filed bankruptcy during the last one year or were part of any administrative procedure, lawsuit, or court action
- Information about any property being seized, foreclosed or any lien applied in the last one year
- Is any of your property under possession or rights of a third party or a custodian or a court-appointed body to benefit the lenders?
- Any amounts used by the lenders in the last 90 days to setoff their debts or any unusual transactions between the debtor and the lender due to some action by the lender
If any gifts or charitable contributions of the cumulative value of over $600 were made, they should be reported under this section
- Some losses that have arisen due to uncontrollable events like floods, fire, earthquakes, natural disasters, theft, etc., should be reported here.
- Gambling losses also should be reported here
- If you received any help from anyone for paying fees or for maintaining your household, such payments should be reported here
- If any property or asset was transferred to you in the one-year timeframe before filing bankruptcy, you should report the same here
- Any transfers of property within 10 years of filing bankruptcy to a trust for which you are a beneficiary should be reported here
- All bank accounts, investments, retirement plans, safe deposit boxes, storage units, and the recent transactions associated with them must be listed here
- Any property stored in a storage unit or anywhere else during one year of bankruptcy should be disclosed here
If there are properties that you manage or hold on behalf of somebody or any asset or property that you are a trustee of or borrowed from someone
- This is specifically for the businesses and requires businesses to notify any potential environmental law breach in the recent years
- Any release of hazardous materials in the environment notified by the government
This is also related to businesses and deals with disclosure of any potential business connections, or takeovers, credits, related parties, financial institutions, etc.
This is not an inclusive list and it can be tricky to fill in the details in SOFA. An attorney by the side can help in accurately entering the details without any hassle. So, why to stress and why to wait, just dial 888-297-6203 to connect with the best attorneys from Los Angeles & Dallas, TX.