Statement of Intention for Individuals Filing Chapter 7 Bankruptcy

Chapter 7 bankruptcy is one of the most common types filed by borrowers. Still, there are many different requirements you must fulfill when filing Chapter 7, including submitting the statement of intention. If you fail to submit this important document, it could result in a dismissal of your bankruptcy case. This can leave you vulnerable to creditors, wage garnishments, and other forms of collection. Below, one of our Chapter 7 bankruptcy lawyers explains more about this form.

What is a Statement of Intention?

A statement of intention, also known as Official Form 108, is a bankruptcy form you must file with the court. The form tells your creditors what you intend to do with your secured debts, such as an auto loan, a mortgage, or a lease. You have many options with your statement of intentions. It is important to work with a Chapter 7 bankruptcy lawyer who can explain your options further and help you determine which one is right for you.

Can You Amend Your Statement of Intention if You Change Your Mind?

If you have changed your mind and wish to amend your statement of intention, you may be able to do so. If at first you wanted to surrender your vehicle but have now decided you want to keep it and pay the amount owed on the loan, this may only be possible if you are current with your payments and the car is insured. If you are not current with your payments, the bank will typically require you to bring the loan current before they reaffirm the loan.

You can find a blank copy of the statement of intention as a fillable online form. It is important to save the form so you do not lose any changes after closing the browser window. You can also fill out the amendment by hand after printing it out.

You will need to check the box indicating that the form is an amended filing. You will also have to fill in your name, case number, and the name of the court. You will have to include your spouse’s name if you are filing jointly. To notify the court and the financial institution that you have changed your mind, you must then check the appropriate box. You will need to sign and date the form and make three copies and submit the original copy to the court. There is no court filing fee when amending your statement of intentions.

Do I Have to Send the Statement of Intention to All of My Creditors?

If you are filing Chapter 7 bankruptcy, you must fill out the statement of intention if creditors have claims against secured property, or you have leased personal property and the lease has not expired. You must submit the form with the court within 30 days of filing the bankruptcy petition. You must also send a copy to any lessor or creditor you listed on the form.

Will My Petition Be Denied if I Don’t File the Statement of Intention with It?

You must meet many eligibility requirements when filing Chapter 7 bankruptcy, and you must submit many documents. In a typical bankruptcy case, there can be more than 50 documents in total you must submit. If you do not file these with the court, it can give a judge reason to deny your bankruptcy case. This includes the statement of intention. If you meet the requirements for the statement of intention, you must file it. While you do not have to submit it with your petition, you must submit it to the court within 14 days of filing your petition.

Options You Can Declare in Your Chapter 7 Statement of Intention

Before filling out your statement of intention, it is important to understand what the terms mean. The options you can declare in your Chapter 7 statement of intentions are as follows:

• Surrender your property: Surrendering the property, or letting go of it, is the most straightforward option. You simply give the property back to the creditor. If you cannot afford to make payments for the property, you no longer need it, or the asset is valued at less than what you owe, surrendering it may be the best option for you. In the majority of cases, the discharge you receive in bankruptcy will eliminate any personal liability for the debt while also allowing the creditor to take the property back.
• Reaffirming the debt: If you still need the property, such as a vehicle you use to drive to work, you may be able to reaffirm the debt. This means entering into a new contract with the creditor. You can keep the original terms of the loan or negotiate new terms that are more advantageous to you. If you choose to reaffirm the debt, you must file the reaffirmation agreement with the court. You will also have to attend a hearing during which a judge will determine if the reaffirmation agreement is in your best interests. You must use this option before your bankruptcy case is finalized.
• Retain the property: Certain creditors will allow you to retain the property without reaffirming the debt, as long as you are able to stay current with your payments. The creditor retains the right to repossess at any time. Due to the fact that there is no longer a contract between you and the creditor, your payments are not reported to the credit bureaus, so timely payments cannot help you rebuild your credit.
• Redeem the property: You can redeem the property if you are able to buy it back from the creditor. With this option, you are required to pay what you still owe on the debt or pay the replacement value of the property, whichever amount is less. Many people do not choose this option because you must repay the debt in a lump sum and those who file bankruptcy often do not have large amounts of money available.

Contact Our Florida Chapter 7 Bankruptcy Lawyer for Help

If you are filing Chapter 7, there are many requirements you must fulfill, including the statement of intention. At Loan Lawyers, our Chapter 7 bankruptcy lawyer in Florida will ensure all of your requirements are met so you have as much debt discharged as possible while still protecting your property. Call us now at (954). 523-4357 or contact us online to schedule a free consultation and to get the legal help you need.