Statement of Financial Affairs: Question 3

05 May 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.

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Brett Weiss, a senior partner at The Weiss Law Group, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11, and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his colleague, Daniel Press, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the previous Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute and the Bankruptcy Bar Association of Maryland. He has received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, the United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.

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