Accurately completing your statement of financial affairs (SOFA) is one of the most important early steps in your bankruptcy proceeding. Like business’s balance sheet, your SOFA should list the entire universe of your assets and liabilities, including which creditors have a priority claim, a secured claim, and an unsecured claim against you.
As a general rule, you must list everything you own or owe on your SOFA – even if you are absolutely certain that the listed asset is protected against repossession or the listed debt is uncollectible. In fact, failing to disclose a portion of your assets or liabilities can be a serious civil and criminal offense that may be fatal to your ability to file for bankruptcy and receive a discharge of your debts.
Your SOFA may look like a “check the box” form, but appearances may be deceiving. The questions on a Statement of Financial Affairs tend to be nuanced, precise, and comprehensive. To make sure that you complete your SOFA correctly, you should seriously consider speaking with an experienced and qualified bankruptcy professional.
The dedicated attorneys at the law firm of Fears Nachawati are prepared to help you. For your free consultation and the opportunity to find the answer to your questions about your Statement of Financial Affairs and, more generally, your bankruptcy, contact us today.