When individuals file Chapter 7 bankruptcy, they must complete a considerable amount of paperwork. There are several forms to fill out, so the bankruptcy court can obtain an accurate look into the individual’s finances before moving forward with the bankruptcy.
Filling out this paperwork can be overwhelming when individuals face significant debt. So, here is a brief overview of the Statement of Financial Affairs (SOFA), one of the forms everyone filing bankruptcy will complete.
The SOFA provides an overview of your finances
Generally, the SOFA lists financial transactions the individual has made in the last few years. The form is rather straightforward, but individuals must have all their financial documents readily available to complete the form properly.
For example, individuals must include financial information from the last year, such as:
- Wage garnishments;
- Any insider payments or preference payments they made;
- House foreclosures or repossessions of other assets; and
- Any financial losses they experienced after an accident.
Individuals must also include information from the last two years, including, but not limited to:
- All types of income they received, including wages, child support and spousal support;
- Gifts they gave that were over $600; and
- Any property they transferred or sold to others.
Bankruptcy paperwork can be overwhelming
Filling out the SOFA is required for individuals who file bankruptcy in New Mexico, regardless of the chapter of bankruptcy they file.
All of the bankruptcy paperwork requires great attention to detail to ensure individuals obtain the debt relief they deserve. That is why it is beneficial for individuals to speak with an experienced bankruptcy attorney to help make the process easier.