What Is a Statement of Financial Affairs?
The Statement of Financial Affairs is a significant document that you’ll need to prepare along with a Licensed Insolvency Trustee. Although the title may seem daunting, it’s essentially a comprehensive budget. Understanding the purpose of the statement, who will receive it, and the information you need to provide can alleviate any stress associated with its completion.
What is a Statement of Financial Affairs?
A Statement of Financial Affairs is a document that outlines your assets, liabilities, income, and expenses. This data provides your trustee with an overall picture of your financial situation to determine several aspects:
- Your current financial status.
- Whether surplus income payments are necessary.
- Which assets may be confiscated and liquidated.
- Which assets are exempt.
- Which creditors will be included in your bankruptcy.
- The fees and charges you’ll have to pay.
After completing the budgetary worksheet, your trustee will ask about your family life, job, and recent spending habits. Your responses will be compiled and presented in a document that you’ll be required to sign. It’s crucial to thoroughly read and understand the Statement of Financial Affairs before signing.
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Essential Information for a Statement of Affairs
An accurate Statement of Affairs is crucial. It shields you from creditors’ inquiries regarding your financial management and bankruptcy filing. It also ensures a smooth path to an automatic discharge.
When meeting with your trustee, come prepared with the following details:
- T-4 forms.
- Tax returns.
- Estimated tax refund.
- Information about life insurance policies with a cash value.
- Securities statements.
- Bank statements.
- Utility bills.
- Mortgage loan statements.
- Debt statements.
- Auto loan statements.
- Deeds and titles.
- Retirement savings statements.
- Student loan information.
- List of personal possessions such as furniture, jewelry, and clothing.
Who Receives the Statement of Affairs?
Knowing who will receive your document, which contains sensitive personal information, can help alleviate any anxiety. Your trustee will retain a copy of your Statement of Affairs and forward a signed copy, along with other documents, to the Office of the Superintendent of Bankruptcy.
Your creditors will also receive a copy of your Statement of Affairs at the onset of the process. This allows them to be fully informed and participate in the creditors’ meeting.
The Statement of Affairs is a vital document to progress your bankruptcy. Collaborating closely with your trustee can simplify the process for both of you.
