Bankruptcy Form Questions

Special questions in bankruptcy forms require attention

You must report all financial accounts maintained with third parties within bankruptcy forms. This requirement includes checking accounts, savings accounts, and brokerage accounts regardless of current balances. Also, many other accounts must be listed within bankruptcy forms.

Record keeping questions in free bankruptcy forms

Bankruptcy courts ask whether you maintained books and records of your financial affairs within the last two years preceding filing. If, for any reason, you do not have books and records available for inspection by the court or trustee, you must provide an adequate explanation.

If books and records are unavailable due to an act of god such as fire or flood, documentation will not be required. Loss by theft must also be documented, so be sure to report any loss by police report. Likewise, records lost by human error must also be explained adequately by date, time and manner by which books and records were lost or destroyed.

The books and record-keeping requirements can be invasive, yet bankruptcy courts have a legitimate concern when documenting the disposition of all assets and property transfers. Bankruptcy courts are particularly concerned with disappearing assets and rely heavily on secondary documentation other than testimony from debtors. Oral testimony is admissible evidence, but in federal bankruptcy court, judges retain broad authority to assign weight and credibility to testimony that is not subject to reversal on appeal except by satisfaction of a stringent list of requirements showing clear abuse.

Property held for another must be disclosed in bankruptcy forms

If you hold property for another person, the value of this property and owner must be identified. The easy solution is to return all property held for another prior to filing. Otherwise, you must report their name in official bankruptcy forms and schedules and potentially require an appearance to substantiate third party ownership.

Note:

Bankruptcy forms change regularly.
Free bankruptcy forms are not guaranteed by the courts.
Local rules may amend bankruptcy form requirements.
Different bankruptcy forms are required under each chapter.
Information provided in bankruptcy forms is under oath.
If you have questions regarding bankruptcy forms, contact a qualified attorney.