Understanding the Bankruptcy Petition Form

When a person reaches the point where bankruptcy is the only option left open to them if they truly want to control and repair their finances, they will suddenly find themselves seeking out specifics about how to proceed. Chances are they have sought different avenues to remedy their problem prior to coming to the conclusion that bankruptcy was the only option that remained to them.

One of the things a person filing for bankruptcy should understand are some of the many forms and petitions they will be required to complete as part of the bankruptcy process.  The first step is the bankruptcy petition which will need to be filed with the clerk of the bankruptcy court in the jurisdiction of the debtor.

Filing for Bankruptcy

The bankruptcy petition form itself is made up of several different sections. The sections will have you list all your assets (personal property that belongs to you) and others will have you list your debts (all the companies and organizations you owe money to).  Still others will have you list your monthly income as well as expenses, and whether or not you are able to pay your bills or require financial relief.

It will also be important that you know whether or not you will be filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. In any case, depending upon your ability to pay or not pay any of your bills, the court may have you switch to one or the other chapter of bankruptcy so that in the end you are able to remain financially solvent.

Bankruptcy Filing Forms

Voluntary Petition: On this form you will complete for the court you will list all your personal information along with your decision to file bankruptcy yourself.

Application to Pay Filing Fee in Installments: This form will give you the opportunity to request paying your filing fee in installments (assuming you are unable to afford the filing fee).

Schedule A - Real Property: This form is where you will list any and all real property you own, for example, your home and any other homes, land, etc you own. Think of "real property" as anything which is attached to the ground.

Schedule B - Personal Property: This form is where you will list all your personal belonging; such things as: clothing, furniture, appliances, cars, jewelry, retirement funds, savings, etc.  This is all other items that you own which are not attached to the ground.

Schedule C - Exemptions: On this form you will choose exemptions which are either offered by your state or by the federal government.  These are items which the bankruptcy court will not be able to take from you in an effort to satisfy your creditors. The states differ to some extent in what they allow and the amount they allow in exemptions, as do the federal exemptions.  Depending upon how much real and/or personal property you own you may want to have an experienced bankruptcy attorney review these options with you.

Schedule D - Secured Debts: On the form you will list all the debts and/or bills you owe that secured in some way by property.  An example would be your mortgage which is tied to your house, or a loan that is tied to a retirement or 401K account.

Schedule E - Priority Debts; These are the debts that the government exempts from the bankruptcy proceeding because you will continue to owe on these debts after the bankruptcy unless you somehow meet a particular qualification.  These can be back taxes which are owed or possibly spousal and/or child support payments.

Schedule F - Unsecured Non-Priority Debts: On this form you will list all unsecured debts and bills that are not tied to property.  Generally these are debts such as credit cards and medical bills.

Schedule G - Executory Contracts and Unexpired Leases: These are debts you owe on that you have signed a contract in order to obtain.  These are such things as car leases or cell phone programs.

Schedule H - Co-Debtors: On this form you will list all debts you owe in conjunction with someone else. If someone helped you get a loan by co-signing they become a co-debtor and you will have to list them on this form.

Schedule I - Current Income of Individual Debtor: This form is where you will list all your forms of income, including employment, alimony, social benefits, rental income, etc.

Schedule J - Current Expenses of Debtor: On this schedule you will list all your household expenses including everything from groceries to mortgage payment, medical expenses, the amount you spend on laundry, on insurance on credit card payments and care payments, and everything else that you pay some amount on each and every month.

There are also additional forms that will have to be completed, like the "Debtor's Statement of Intention" for Chapter 7 filers, the Statement of "Financial Affairs" (SOF) a long questionnaire regarding recent debts and expenses as well as business you may have owned; there is also the "Means Test" which in necessary to complete for Chapter 7 filers.  You may also have to complete a "Creditor List," a "Statement of Social Security Number," and a "Certification of Personal Financial Management Course," - proof you have completed this course prior to filing for bankruptcy.

Seek Legal Counsel

The complexity of the bankruptcy process can be overwhelming, and mistakes in filing can be costly.  For those who want to ensure that the process will work in their favor and who want their rights protected throughout enlist the aid of a competent bankruptcy attorney.