How to Complete a Statement of Financial Affairs in Bankruptcy

Completing the statement of financial affairs is a long and sometimes confusing task. The questions that are asked are probing in nature, requiring a thorough read before answering. If the situation posed by a question does not apply, be sure to check the box provided. Make sure to not miss anything on this form so as to avoid questioning by the trustee.

Filling Out the Statement of Financial Affairs

You may find that there's insufficient room for entering information. Add information onto a separate sheet of paper and put down the following information: Case name (your name), case number if known, and the number of the question. The court will have no issue with this as long as the question and answer is clearly defined.

Questions One through Eighteen

All of these questions must be answered. They are reaching and in depth, ranging from current income to small business income, even closed bank accounts and court proceedings. The questions will reach back up to two years when asking if an action has been taken. For example, question one asks for two years of income from employment or operation of business. Enter the combined income from the past two years as your answer.

Questions Nineteen Through Twenty-Five

These questions pertain to business issues. You must answer if you have involved in owning a business in any way. It can be a partner, corporate officer or ownership of more than 5% of voting stock. Sole proprietors, independent contractors and limited partners of a partnership are exempt from filling out this section. Go to the signature page if you have never had any involvement in a businesses.

Signature

Pay attention to where you are signing. There are three different sections set aside that apply to different circumstances which may be confusing. If you, the debtor, filled out the information, sign your name in the first section provided. Your spouse will sign as well in a joint bankruptcy. The second section is for corporations only. Do not sign here if you are an individual debtor. Section three is solely for non-attorney bankruptcy preparers. It is not uncommon for paralegals to fill out bankruptcy petitions. Bankruptcy law requires them to sign their name and supply information. Again, do not sign here if you yourself filled out the form.

Hiring Legal Assistance

The complex nature of the statement of financial affairs can trip up the filer. Questions may seem as clear as mud to those who are unfamiliar with them. An experienced bankruptcy attorney understands the intent of what's being asked and can translate it into plain language. It's in your best interest to hire a bankruptcy lawyer to assist with filling out the petition and filing the paperwork.