Statement of Financial Affairs Question

[craigerzz]

Hi everyone, I'm getting close to being done with the paperwork, I can actually see a light at the end of the tunnel! I have a couple of questions in regards to the statement of financial affairs.

1) Where it asks to list payments to creditors that amount to over $600 for the previous 90 days. The only thing I have payed over that amount would be my rent payments. Should I list those?

2) I want to list my tax return for 2005, I expect it to be about 1500. Should i list that in my assets and claim the wild card exemption for it?

Thanks,

Craigerzz

[StaciMM]

1. Great question! I hope its not a booboo that I didn't think about this. (I didn't list my rent payments, just car payments.)

2. If you have a WC to use, I'd say go for it. (I did list a possible tax refund as an asset & exempt it.) My 341 is in October, if you're about to file yours will be early November most likely. By then, the trustees are very likely to be thinking about tax dollars. Doesn't hurt to protect it if you have the exemption available.

[HHM]

First, the relationship between landlord and tenant is not one of debtor-creditor. Most rent is paid as "month in advance". So no, you don't need to list rent in your SOF as a a payement over $600.

Generally, that question on the SOF should be reworded to say "payments to unsecured creditors" as that is what the concern is. Since the trustee, under most circumstances cannot undue payments to secured creditors, you do not need to list payments to secured creditors that exceed $600.

If you have an exemption for your Tax Return, then list it on your schedule of personal property and claim the requisite exemption, otherwise don't list it.

[craigerzz]

I have money left over from the wild card exemption, there is no specific exemption that i found for it. Is it ok to use the wild card exemption on a tax return?

[HHM]

I have money left over from the wild card exemption, there is no specific exemption that i found for it. Is it ok to use the wild card exemption on a tax return?

Generally yes, but I can't speak specificallyto how your state's wild card exemption is worded and applied.

[hhou812hh]

First, the relationship between landlord and tenant is not one of debtor-creditor. Most rent is paid as "month in advance". So no, you don't need to list rent in your SOF as a a payement over $600.
Generally, that question on the SOF should be reworded to say "payments to unsecured creditors" as that is what the concern is. Since the trustee, under most circumstances cannot undue payments to secured creditors, you do not need to list payments to secured creditors that exceed $600.

If you have an exemption for your Tax Return, then list it on your schedule of personal property and claim the requisite exemption, otherwise don't list it.

Just a note from what I have researched that's any back rent paid to a landlord maybe considered a preferential transfer. Current rent is not a pref transfer though.

[craigerzz]

there is a 200 cap on cash for the exemption, is the tax return considered cash?

[HHM]

Just a note from what I have researched that's any back rent paid to a landlord maybe considered a preferential transfer. Current rent is not a pref transfer though.

True, when you default on rent, then a debtor-creditor relationship is created, so to speak, because now you have used a service without paying for it, effectively creating a debt. I still think a trustee would have a hard time undoing a payment to a landlord because the landlord-tenant scenario is treated differently under bankruptcy.