Understanding Official Form 108 for Chapter 7 Bankruptcy

Understanding the Official Form 108: Statement of Intention for Individuals Filing Under Chapter 7

The Official Form 108 is a crucial document required by the United States Bankruptcy Court when an individual files for Chapter 7 bankruptcy. It serves to inform the court of the debtor’s intentions regarding secured property and unexpired personal property leases. Proper completion of this form ensures compliance with bankruptcy procedures and helps facilitate the resolution of secured debts and lease obligations.

Purpose and Scope of Form 108

Form 108 is designed for individual debtors who are filing for Chapter 7 bankruptcy and have secured claims or unexpired personal property leases. Its primary purpose is to disclose the debtor’s intentions concerning:

• Property that serves as collateral for secured claims listed in Schedule D (Creditors Who Have Claims Secured by Property).
• Unexpired personal property leases listed in Schedule G (Executory Contracts and Unexpired Leases).

This form helps the court and creditors understand whether the debtor intends to surrender, retain, redeem, or reaffirm secured property, and whether they will assume or reject personal property leases.

Who Must Complete Form 108?

Debtors filing under Chapter 7 who have secured creditors or unexpired personal property leases are required to fill out and submit this form within 30 days of filing their bankruptcy petition or by the date set for the creditors’ meeting, whichever is earlier. Failure to file on time can result in delays or complications in the bankruptcy process.

Key Sections and How to Fill Them Out

Part 1: Listing Secured Creditors

This section requires detailed information about each creditor with a secured claim against the debtor’s property. For each creditor, the debtor must specify:

• The creditor’s name.
• The description of the property serving as collateral.
• The debtor’s intention regarding the property, choosing among surrender, retention and redemption, reaffirmation, or other explanations.
• Whether the property is claimed as exempt.

Both spouses filing jointly must complete this section together, and both must sign and date the form, attesting to the accuracy of the information provided.

Part 2: Listing Unexpired Personal Property Leases

In this section, debtors list any personal property leases that are still in effect at the time of filing. For each lease, the debtor must provide:

• The lessor’s name.
• A description of the leased property.
• Indicate whether the lease will be assumed or rejected by the debtor.

It is important to note that real estate leases are not included in this section; only personal property leases are relevant here.

Filing Deadlines and Responsibilities

The debtor must file Form 108 within 30 days of the bankruptcy petition filing or before the creditors’ meeting, whichever comes first. If the debtor’s intentions change after filing, they may need to amend the form accordingly. Accurate and complete responses are essential to avoid disputes or delays in the bankruptcy process.

Signatures and Penalties

Both debtors must sign and date the form under penalty of perjury, confirming that the information provided is truthful and complete. Any false statements can result in legal penalties, including potential charges of perjury.

Post-Filing Considerations

After submitting Form 108, debtors should be prepared to cooperate with the bankruptcy trustee and creditors regarding their stated intentions. If the debtor plans to retain property, they may need to take additional steps such as redeeming or reaffirming the debt. Conversely, surrendering property typically involves turning over the collateral to creditors or the trustee.

In summary, Form 108 is a vital document that clarifies a debtor’s plans for secured property and leases during bankruptcy. Proper completion and timely filing help ensure a smooth bankruptcy process and compliance with federal bankruptcy rules.