Statement of Intention
Debtors filing Chapter 7 Bankruptcy must file a Statement of Intention if their schedule of assets and liabilities includes any type of consumer debt that is considered secured.
Statement of Intention
The Statement of Intention will outline the debtor's intentions to either retain (through redemption) or surrender the property. The debtor must complete and file their Statement of Intention within 30 days from the date they filed their Chapter 7 Bankruptcy petition or by the date of the 341 Creditor's Meeting or the earlier of the two. Under some conditions the bankruptcy court may extend the deadline if cause exists.
The debtor has 45 days from the date of filing their Statement of Intention to perform the actions outlined in the form including reaffirming the debt or finishing payments for the secured property (under some conditions the bankruptcy court may extend this deadline (11 U.S.C. § 521(2)(B)). If neither of these actions is done, the bankruptcy court will lift the automatic stay on the property, and the creditors may proceed with their collection actions against the debtor. The Chapter 7 Bankruptcy trustee and the bankruptcy creditors must be provided a copy of the Statement of Intentions prior to the date or on the date the document is filed with the bankruptcy court. Amendments may be made prior to the expiration date outlined in (11 U.S.C. § 521(2)(B)). Talk to a bankruptcy lawyer immediately if you are filing Chapter 7 Bankruptcy.
More Help on Statement of Intention
- 341 Meeting - The meeting of creditors, which is also commonly referred to as the 341 Meeting, allows the creditors, the trustee and the United States Trustee to question the debtor under oath. - read more
- Secured Debt - Secured debt is any type of debt which is backed by collateral or something of value which can guarantee the secured lender that the amount of the loan can be repaid or the item of value can be repossessed to pay the loan. - read more
- Trustee - The bankruptcy trustee program, created by the United States Department of Justice, manages and oversees the bankruptcy process to improve efficiency and guarantee the integrity of the bankruptcy system. - read more