What does a SOFA have to do with bankruptcy? Part of the required paperwork is called the Statement of Financial Affairs or SOFA. The SOFA is a series of questions that must be answered. This is where everything that has not already been provided in the petition and schedules is listed.
The first page of the SOFA gives specific instructions. The first few questions deal with income. Unlike Schedule I which is for current monthly income or the means test which looks back six months, the SOFA asks for your year to date income and the past two years of your income. It asks for wages and money from business as well as all other income. All other income includes annuity payments, interest income, rents, investment income, unemployment compensation, worker’s compensation payments, spousal support, child support and lottery winnings to name a few.
The next are questions about debt payments. If the bankruptcy consists of mainly consumer debts, then any payments made in the 90 days prior to filing that equal or exceed $600 must be disclosed here. These are considered preference payments and the Trustee can choose to go after return of the payments and divide them among the other creditors. All payments to insiders, like your family members, made within the past year must be listed. If you are married and filing a sole petition you must also account for any payments made by your spouse. If significant payments have been made to family members and none to other creditors then it is wise to wait until one year has past to file a bankruptcy. Otherwise there is a very real risk that your relative will be sued by the Trustee for return of the payments.
Repossessions, foreclosures and returns are also listed on the Statement of Affairs. All assignments, receiverships, transfers and set-offs are also listed and fully described. The bargain you make when filing for a bankruptcy is full disclosure of your entire financial picture in exchange for discharge of all dischargeable debts.
If anyone has sued you, there is a place to put the case information including case caption, case number and court. Any garnishments and repossessions are also listed.
Gifts to an individual or charitable contributions in the past year must also be listed with a few exceptions. All losses from fire, theft and gambling in the last year are described.
Payments to your attorney and for the credit counseling course are listed.
If you have a safe deposit box the contents are listed. If you are using anything that belongs to another person that is listed. Many people forget to list that DVR or cable modem that is rented or on loan.
If you live in California or any other community property state you must list your spouse if they are not filing with you. If you have been divorced less than nine years, you must list the name of your former spouse.
If you have a business there are a number of questions that must be answered. The more complex the business the more questions that must be answered.
The SOFA is a lengthy and complicated series of questions that must be answered completely and correctly or your bankruptcy case could have problems. If the answers are not complete or don’t match with your tax returns and other materials that the trustee will review you will be challenged and may lose your discharge. Make use of a trusted and knowledgeable legal adviser to make certain that your case is well prepared.
- Scared by Jacksonville Attorney, J. Dinkins G. Grange
- Schedules and Statements by Omaha and Lincoln, Nebraska Attorney, Ryan D. Caldwell
- Section 341 Meeting of the Creditors by Allen Park, Michigan Attorney, Christopher McAvoy
- Security Interest by Jay S. Fleischman
- Signs by Livonia Michigan Attorney, Peter Behrmann
- Small Claims by Wisconsin Bankruptcy Lawyer, Bret Nason
- Sole Proprietorship by Bay Area Attorney, Jeff Curl
- Spouse by Cleveland Bankruptcy Attorney Bill Balena
- Statement of Intention by Metro Richmond Consumer Attorney, Mitchell Goldstein
- Statutory Lien by Dorota Trzeciecka Bankruptcy Blog
- Step Plan by Kurt O’Keefe Michigan lawyer
- Strip by Bay Area bankruptcy lawyer Cathy Moran
- Stripping in Bankruptcy Court by Los Angeles Attorney, Mark J. Markus
- Student Loans by Colorado Springs Lawyer Bob Doig
- Student Loans by Hawaii Lawyer, Stuart T. Ing
- Stuff by WilksLaw, DC Metro
- Surrender by Metro Richmond Consumer Attorney, Mitchell Goldstein
Image by Leo Reynolds.