Statement of Financial Affairs: Question 3

This is the third in a series of blogs about the Statement of Financial Affairs and the questions it asks.

Question 3 is broken down into three parts, (a), (b) and (c). Part (a) requires the listing of certain payments made to creditors within the 90 days before the case is filed if your debts are primarily consumer debts (rather than primarily business or tax debts). What sort of payments are listed here?

* Mortgage payments;
* Auto loan payments;
* Utility Bill payments;
* Credit card payments;
* Medical bills;
* Taxes;
* Student Loans;
* Domestic Support Obligations (usually alimony and child support);
* Payments on any loan or installment purchase;
* Payments on any other debt.

In other words, payments to all creditors. Note that this section does not require you to list purchases, only payments on pre-existing debt. For example, if you pay cash for a car, it doesn’t have to be listed here.

You only have to list the payments if the total amount of all payments to that creditor are $600.00 or more. So if you make three payments on your electric bill that total $580.00 in the 90 days before your case is filed, you don’t have to list any of them; if the payments total $602.87, you need to list them all.

If you’re married and your case is a Chapter 12 or Chapter 13, you have to list all applicable payments made by your spouse, even if he or she isn’t filing, unless you’re separated.

If your debts are primarily business or tax debts, you need to complete section (b). The principle is the same as for section (a), except that instead of listing payments totaling $600.00 or more, you list payments totaling $5,475 or more.

Payments to “insiders” are listed in section (c). For individuals, an insider is a relative, a corporation where the individual is an officer, director or person in control, a relative of a general partner, or a partnership in which the individual is a general partner. For corporations (including LLC’s), an insider is a director, officer, person in control, a relative of a general partner, officer, director or person in control, or a partnership in which the corporation is a general partner.

The payments under section (c) must be listed, regardless of amount.

No related posts.