You are here

Statement of Intention for Individuals Filing Under Chapter 7 page 1

Produced by Attorney Mariah Jennings-Rampsi for MassLegalHelp
Created August 2016

Get the Statement of Intention for Individuals Filing Under Chapter 7 from the US Bankruptcy Court website.

Save the form on your computer.

The Statement of Individual Debtor’s Statement of Intention has 2 parts.

Use both Schedules D and G to fill out the Debtor’s Statement of Intention form.

After you finish Schedule D, use it to fill out the 1st part of the Statement of Intention. Then put the Statement of Intention aside.

After you finish Schedule G, go back to the Statement of Intention. Use Schedule G to do part 2 and finish the Statement of Intention.

What if I do not have any secured debts?

If you list secured debts on Schedule D, you have to decide if you want to keep the property that is connected to the debts. The property is “collateral” for those debts. And you must tell the court what you are doing with the debts and the property on the “Statement of Intentions.”

Your choices

Surrender: You tell the court you want to give the property back to the creditor.

Retain: You tell the court you want to keep the property. You may have to pay some or all of the debt that goes with the property.

If you want to retain the property, you must tell the court how you will pay the loan on it. You have 3 choices:

1. Retain and Redeem: You pay the creditor what the property is worth during the bankruptcy case, usually in one payment. The payment is the replacement value of the property. If your property is “upside down,” you owe more than it is worth. Redeeming is a good way to get rid of debt. You only pay what the item is worth. But you must have the money now. You will no longer owe the debt and the creditor will no longer have a lien on the property.

2. Retain and Reaffirm: You agree to make payments and still owe the debt. You have to show the court you can afford the payments.

You will sign a new agreement with the lender. You can ask the lender for a new loan with different terms. Or the lender might make you keep the same loan.

When you reaffirm, the debt is not wiped out in your bankruptcy. If you miss a payment later, the lender can repossess the property and sell it. They can also come after you for money if the property was not worth enough to pay off the whole loan.

3. Retain the property and… work it out with lender:

Check “Retain the property and [explain]……” to tell the lender you want to keep the property and keep making payments, but you do not want to reaffirm the debt. Put “keep paying” in the blank space. The lender does not have to agree. If you miss a payment later, the lender can repossess the property and sell it to pay the loan. But they cannot try to get the rest of the debt from you if the property was not worth enough to pay off the whole loan. You can also check “other” if want to keep the property, but you cannot prove to the court that you can afford the payments.

If you have a judgment lien on exempt property, you can file a motion to remove the judgment lien. For now, check “Retain the property and….”. Put “remove the lien” in the blank space after “Retain the property and [explain]…”

Should I keep my car and reaffirm the car loan?

The decision to keep and reaffirm your car loan depends on if you can afford your car payments.

Can you make your car payments once you have no other debts?

Yes, I can. Reaffirming your car loan might be a good idea. If you decide to reaffirm your car loan, contact the lender. Let them know you want to reaffirm. Ask them if they will send you a “Reaffirmation Agreement.”

No, I still cannot afford the payments. Then reaffirming your car loan is probably a bad idea. After you file bankruptcy, you still have to pay the car loan.
If you cannot make the payments, the creditor will repossess the car and sell it to pay off your loan.
You might owe more on the loan than the car is worth. If you reaffirm a debt you cannot pay, the lender can try to make you pay the rest of the money you owe even after they sell the car. So you have no car and you still owe money on it. This is the danger in reaffirming your loan.

If cannot keep up with your car payments, it may be better to surrender the car – give it to the bankruptcy estate. If you surrender the car now and do not reaffirm, the car loan will be forgiven in your bankruptcy. You can start over and save for another car.

Only you can make this decision, but a judge will have to approve it if you want to reaffirm the loan.

On the Statement of Intentions

In the top box put your name and your spouse’s if you are both filing.

Skip the box that asks for the District.

Put “Mass.” in the box that asks for your state.

The clerk will give you the Case No. when you file your Bankruptcy Petition.

The top box of most Bankruptcy forms.

Most of the Statement of Intention is easy to fill out. Some parts are not so easy to understand. It is important to understand the question before you answer it.

Part 1

List your creditors who have secured claims.

  1. List every secured creditor you listed on Schedule D.
  2. Describe the property in the space that says, “Description of property securing debt.” For a vehicle, write the year, make, and model. For a house, write the address.
  3. Check the box to tell the court if you want to keep the property or give it back to the lender.

    Remember

    • Retain and Redeem - you agree to pay off the debt up to the value of the property during the bankruptcy case.
    • Retain and Reaffirm means - you will keep making payments and keep owing the debt because you want to keep the property.
    • Retain and ….. means you want to work something out with the lender without reaffirming, or you want to get rid of a judgment lien on exempt property. You have to write in what you want to do.

    4. Did you claim the property as exempt in Schedule C? Look back at schedule C. Exempt means the trustee cannot take the property and sell it to pay your debts. If the property is “exempt,” check the box.

    If you are not claiming the property as exempt check the box that says, “Not claimed as exempt".

    Note

    Even if your house is exempt, you have to keep making mortgage payments if you do not want the bank to foreclose on your house. If you have a car loan, even though some of the car is exempt, you still have to pay the car loan.

     

    • If you want to give the property back, check the box that says, “Surrender the property.”
    • If you surrender all your property listed on the form, you do not have to fill out anything else for this form.
    • If you want to keep the property check one of the “Retained” boxes. You must tell the court how you will pay the debt. Check 1 of the 3 boxes Redeem, Reaffirm, or Other.

Statement of Intention Part 1

You have not finished your Statement of Intentions. Put this form aside. Fill out Schedule E/F and Schedule G, then come back and do Part 2 of the Statement of Intention.

Filing without a lawyer

  • Bankruptcy is complicated. Filing without a lawyer is risky.
  • You can lose property and money. You can go to jail if you do not tell the truth.

Ask a Law Librarian

If it's
Monday-Friday
between
9am and 4pm