When you file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy, you are required to fill out a statement of financial affairs. In this article, we’ll explain what a statement of financial affairs is, what it includes, and who is allowed to see it.
The statement of financial affairs form, also called a SOFA, is one of the forms a bankrupt debtor is required to fill out as part of their bankruptcy filing. These forms are intended to give the bankruptcy court a picture of the debtor’s financial situation and why they are filing for bankruptcy.
Statement of financial affairs forms are used for Chapter 7, Chapter 11, and Chapter 13 bankruptcy. There are two versions of it, one for individuals and one for non-individuals, usually companies.
The statement of financial affairs form covers a lot of territory, including the following information:
Because the statement of financial affairs form is filled with sensitive personal information, you may wonder who is allowed to access it. The following parties receive a copy of the debtor’s statement of financial affairs.
The statement of financial affairs is thorough, but it is rather straightforward and should not be too difficult to fill out. That being said, it is still very detailed and requires careful attention during preparation so that you are certain that you don’t make any mistakes. This is especially important because there are fines and criminal penalties for lying on the statement of financial affairs form. For this reason, you should be certain to only tell the truth.
If you need some help, you may work with a petition preparer or, even better, an experienced bankruptcy lawyer, who will be able to offer assistance in the process of filing for bankruptcy and make sure you fill out your forms correctly so you don’t have issues down the line.