Help with Bankruptcy Forms: Chapter 7 Individual Debtor's Statement of Intention

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One of the bankruptcy forms that individuals filing for Chapter 7 bankruptcy needs to fill out is the Individual Debtor's Statement of Intention. This particular form requires that the debt make some critical decisions about the assets and debts they have. In general, when you enter Chapter 7 bankruptcy, the goal is to turn over any assets you cannot pay for not covered by exemptions. However, if you can financially maintain the monthly payments on some debts, you may be able to keep them. This form helps you to state your intentions with the debts you have.

Your Options

With this bankruptcy form, the debtor will tell the court if he or she wishes to reaffirm the debt, redeem the debt or surrender the property.

Reaffirmation

When the debtor reaffirms the secured debt, the debtor wishes to continue with the repayment of the debt. Therefore, the debtor will keep the property. An example here is if you wish to reaffirm a car loan, stating you will continue to make payments on the debt monthly in order to keep the car. Only reaffirm those debts you are confident you can repay.

Redemption

Redeeming property means that you will offer the creditor a specific amount of money, in a lump sum payment in the hopes of keeping the property. Generally, you will need to pay at least a replacement value of the asset to keep it. If the creditor agrees to this, you keep the property and do not owe any further debt towards it.

Surrender

When the debtor surrenders the asset, he or she wishes to hand it back to the creditor for release from the obligation of repaying of the debt (if the bankruptcy goes through.) You lose the property but get out of the debt.

Filing Out the Bankruptcy Form

Filling out the Individual Debtor's Statement of Intentions is a process of listing the creditor's name and a description of the property. Then, check the box according to which of the three options listed above you would like to do, reaffirm, redeem or surrender.

Talk to an Attorney

Making decisions about bankruptcy is a complex process. With the aid of an attorney, you can ensure that you make decisions that are right for you financially. An attorney will help you to fill in the Individual Debtor's Statement of Intentions properly so that the documentation present properly to the courts. An attorney is best, rather than filling out this form yourself, since it ensures the bankruptcy process will continue.

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