How to Use the Basic Arizona Bankruptcy Forms in a Chapter 7 Liquidation
The first step to a Chapter 7 liquidation bankruptcy is, of course, completing the bankruptcy petition. That may sound fairly obvious, but preparing the bankruptcy petition and all of the required schedules and attachments is anything but a simple task. So you have a better understanding of what is involved in preparing the necessary Arizona bankruptcy forms for Chapter 7, bankruptcy lawyer Lawrence ‘D’ Pew briefly outlines what makes up each document in the initial case filing.
Chapter 7 – An Outline of the Debtors’ Petition
The Arizona bankruptcy forms presented in this article may also be used with other bankruptcy chapter filings, but we have limited our discussion to those necessary with a Chapter 7 liquidation.
Pew Law Center’s List of Required Forms in Chapter 7:
1. The Voluntary Petition.
The Voluntary Petition (Form B1/Official Form 1) is only three pages long and includes identifying information about the debtor (or debtors if married filing jointly). The Voluntary Petition is, by far, the easiest of the Arizona bankruptcy forms to complete. There are several check-boxes to narrow the scope of the petition to the type of debtors and the chapter that the petition is filed under (ie., check “Chapter 7”). Basic statistical information is also needed, including whether funds will be available to creditors or not, the estimated number of creditors, and the debtors’ estimated assets and liabilities.
When previous bankruptcies were filed by the debtors in the past eight years, then the prior bankruptcy cases must be documented in these Arizona bankruptcy forms as well. When the debtors are tenants of residential property, then they must certify the status of the leases. The last page of the Voluntary Petition is reserved for signatures and declarations under penalty of perjury for any false statements.
2. Exhibits A, C, and D.
The Voluntary Petition includes numerous Arizona bankruptcy forms that are attachments detailing the petitioners’ finances, the first of which are Exhibits A, C, and D. Exhibit A (Form B1, Exh.A) is used to disclose the debtors’ securities, if any, that are registered under Section 12 of the Securities Exchange Act. Exhibit C (Form B1, Exh.C) is a disclosure of any property that the debtors have an interest in that could pose a public health or safety risk. And Exhibit D (Form B1, Exh.D) is the debtors’ statement of compliance with the credit counseling requirement.
3. Schedules A through J.
There are many Arizona bankruptcy forms referred to as “bankruptcy schedules” that must be attached to the Voluntary Petition when filed (along with the debtors’ declarations under penalty of perjury that the bankruptcy schedules are true and correct to the best of their knowledge and belief). The mandatory Arizona bankruptcy forms include the following schedules:
- Schedule A: Real Property (Form B6A/Official Form 6A). These Arizona bankruptcy forms include a complete listing of all of the debtors’ real property interests even if located outside the State of Arizona.
- Schedule B: Personal Property (Form B6B/Official Form 6B). These Arizona bankruptcy forms include a descriptive list of all of the debtors’ personal property, of every kind and nature, wherever located.
- Schedule C: Property Claimed as Exempt (Form B6C/Official Form 6C). These Arizona bankruptcy forms include a list of all exemptions that the debtors are claiming on their property, real and personal, so that the exempt amount is unavailable to creditors in the bankruptcy under state and federal law.
- Schedule D: Creditors Holding Secured Claims (Form B6D/Official Form 6D). These Arizona bankruptcy forms include a complete list of every creditor holding a secured claim against the debtors, such as mortgage lenders and automobile lenders.
- Schedule E: Creditors Holding Unsecured Priority Claims (Form B6E/Official Form 6E). These Arizona bankruptcy forms disclose all unsecured priority claims of the debtors, such as domestic support obligations (DSOs), wages owed to employees, money owed to employee benefit plans, and taxes owed.
- Schedule F: Creditors Holding Unsecured Nonpriority Claims (Form B6F/Official Form 6F). Debtors list all of their unsecured nonpriority claims, such as credit card debts and medical debts, on these Arizona bankruptcy forms.
- Schedule G: Executory Contracts and Unexpired Leases (Form B6G/Official Form 6G). If the debtors are tenants or have unexpired leases, those leases must be detailed on these Arizona bankruptcy forms with a full description of the debtors’ interests.
- Schedule H: Codebtors (Form B6H/Official Form 6H). If there is any other person obligated on a debt along with the debtors, then that individual must be named in these Arizona bankruptcy forms along with the codebtor’s address.
- Schedule I: Current Income of Individual Debtor(s) (Form B6I/Official Form 6I). Even if the debtor’s spouse does not join in the Voluntary Petition, his or her current income information must be included along with the petitioner’s on this schedule.
- Schedule J: Current Expenditures of Individual Debtor(s)(Form B6J/Official Form 6J). These Arizona bankruptcy forms disclose all monthly expenditures for the debtors’ family.
4. Statement of Financial Affairs (Form B7/Official Form 7). The debtors must complete this very lengthy and in depth statement of financial affairs. This is one of the most complicated of the Arizona bankruptcy forms and takes substantial time to prepare accurately. The financial affairs statement is essentially a questionnaire that requires additional disclosures above and beyond those made in the bankruptcy schedules.
5. Chapter 7 Individual Debtor’s Statement of Intention (Form B8/Official Form 8). The debtors must state their intention to surrender or retain property that is collateral, or security, for the payment of a debt. The debt will be discharged, but the creditors must be notified of the debtors’ intention to keep or give up the property used as collateral for the loans. The debtors’ intention regarding any unexpired leases are also disclosed on these Arizona bankruptcy forms. Of the Arizona bankruptcy forms we’ve listed, these are not complicated, but they do involve advance planning with your bankruptcy lawyer at the Pew Law Center.
As you might expect, there are additional Arizona bankruptcy forms that may be needed when the Pew Law Center works with you, depending upon your unique financial circumstances and how the case proceeds. We briefly outlined the primary Arizona bankruptcy forms needed so you can conceptualize the level of difficulty involved in initiating any Chapter 7 bankruptcy. Be mindful, though, that every case is different and requires the careful analysis of bankruptcy lawyer Lawrence ‘D’ Pew.
Confused? Contact Us
The Pew Law Center, PLLC, offers bankruptcy services to clients located throughout Arizona. For more information about our firm and how we can assist you with your Arizona bankruptcy forms, contact our offices to schedule a FREE VIP Bankruptcy Consultation. Bankruptcy lawyer and founder Lawrence ‘D’ Pew looks forward to helping you and your family regain peace of mind and a sound financial future. Call 480-745-1770, we are always here when you need us.