Bankruptcy Forms Offer Person's Accurate Financial Picture
When a person decides to seek financial relief through the courts, there will seem to be no end to the number of bankruptcy forms that will have to be filled out and filed with the court. Each one of the forms filed in a bankruptcy proceeding is designed to offer the court an overall picture of the individual's finances and their reason for seeking relief through the court. The first of the bankruptcy forms the debtor will need to fill out is the voluntary petition for bankruptcy and well as the application and order to pay the filing fee in installments.
The petitioner can also file bankruptcy forms asking for a waiver of the filing fees, but these are approved only in rare circumstances. You will also need to list creditors with the 20 largest unsecured claims and, if needed, an involuntary petition. On top of the schedules showing your assets, you will need the summary of schedules, which includes the figures of certain liabilities.
Those owning real estate will need to file the bankruptcy forms on real property as well as any personal property and the form claiming some of that personal property as exempt from confiscation for sale to satisfy certain debts. Creditors with secured loans will also have to be listed on certain forms, with a separate form for the three different types of unsecured claims.
Forms Show Order In Which Creditors Are Paid
When property is sold to satisfy non-exempt personal property, creditors are listed as having secured claims, priority claims and unsecured claims with any money received by the court begin divided among them. There are different types of unsecured loans that are not dischargeable in bankruptcy that will be listed on the appropriate bankruptcy forms.
Student loans for college as well as past due federal taxes are typically not dischargeable under federal bankruptcy laws and have to be listed on the bankruptcy forms filed with the court. The percentage of any liquidated assets paid on these debts will be determined by the court, but the debtor will remain responsible for any balance owed. Additionally, any debt incurred in the commission of a felony, such as court fines and costs are not dischargeable.
While the plethora of bankruptcy forms can be purchased through many resources, it is advised against an individual attempting to fill out the forms on their own. Having an attorney work on the case can reduce the chance of the petition being disallowed. If the case is thrown out of court due to the bankruptcy forms being incomplete, the filing fee is not refunded and you will have to pay the fee again to file the correct forms.
