Chapter 7 bankruptcy offers debt relief for Americans every year. It’s a legal way to discharge your debts, whether you have mounting medical bills, credit card debt, or you’re unemployed and can’t pay your mortgage. In today’s blog, Groce & DeArmon, P.C., explains what a statement of intention is and why you need one for Chapter 7 bankruptcy.
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A statement of intention for Chapter 7 bankruptcy is a required form for all filers, whether you file as a single person or you’re married and file jointly. It’s known as Official Form 108: Statement of Intention for Individuals Filing Under Chapter 7.
What’s on the Statement of Intention Form?
The Statement of Intention form tells the court what property you intend to keep and what property you intend to surrender for a secured debt. Surrendering the property is a good option if you can’t afford to make the payments, the property is worth less than what you owe, or you don’t need the property.
Statement of Intention forms address leased property, as well, such as leases for equipment or vehicles. These are for current leases only, not for expired ones.
For instance, you lease a car from your local dealership. You’re one year into the two-year lease agreement. You can declare that you want to end the lease or want the trustee to assume the lease on your behalf in Chapter 7 bankruptcy. Leases do not apply to real estate, such as the home or apartment you rent as your primary residence.
How to Fill Out the Statement of Intention Form
The form has three parts. The first part declares secured property you own, the name of the creditor, what you plan to do with it, and if the property is exempt under Schedule C (which deals with business property).
The second part of the form lists any leases you have for property. Here is where you describe the property, who leased it to you, and whether the court trustee will assume the lease.
Part three is where you sign and date the form. The bankruptcy attorneys at Groce & DeArmon, P.C., can help you fill out the Statement of Intention form when we discuss bankruptcy proceedings with you.
Bankruptcy Attorneys at Groce & DeArmon, P.C.
Chapter 7 bankruptcy provides a way for you to wipe the slate clean by discharging most or all of your debts. Our bankruptcy attorneys can help you through this difficult decision. Contact Groce & DeArmon, P.C., or call toll-free 1-800-640-3706 in Missouri or (417) 862-3706 to schedule a free consultation.