Definition: A declaration submitted by an individual declaring bankruptcy, in which they clarify their intentions regarding the retention or surrender of property that they owe money on, and whether they are asserting that property as exempt. This declaration must be filed prior to the initial meeting with creditors or within a 30-day period after filing for bankruptcy.
The statement of intention is a preliminary statement that a debtor files in a Chapter 7 bankruptcy case. It indicates whether the debtor plans to keep or give up property that is secured by consumer debt, and whether the property is claimed as exempt. For instance, if a debtor has a car loan and wishes to keep the car, they would state their intention to retain the property and continue making loan payments. If they do not want to keep the car, they would state their intention to surrender the property to the creditor. The statement of intention must be filed before the first meeting with creditors or within 30 days from the date of filing the bankruptcy petition, whichever comes first.
A statement of intention is a legal document that outlines an individual’s or a company’s plans regarding the treatment of certain assets in a bankruptcy case. It typically addresses whether the debtor intends to retain or surrender specific property, such as a house or a car.
A statement of intention is important because it informs the bankruptcy court and creditors about the debtor’s intentions regarding their assets. It helps establish a clear plan for the treatment of these assets, whether they will be retained or surrendered, which can impact the outcome of the bankruptcy proceedings.
A statement of intention is typically filed within 30 days after the bankruptcy case is initiated. This allows the debtor to provide timely notice to the court and creditors about their intentions regarding specific assets.
Yes, a statement of intention can be modified after it is filed. However, any modifications should be made promptly and with proper notice to the court and affected creditors.
If a debtor fails to file a statement of intention within the specified timeframe, they may lose certain rights and protections related to their assets. It is crucial to comply with the filing requirements to ensure the debtor’s interests are adequately protected.
Yes, a debtor can change their mind regarding the treatment of their assets after filing a statement of intention. However, they must promptly notify the court and affected creditors of the change in plans.
When deciding whether to retain or surrender an asset, factors such as the value of the asset, the amount of outstanding debt secured by the asset, the debtor’s ability to continue making payments, and the potential consequences of surrendering the asset should be considered.
Yes, a creditor can object to the debtor’s statement of intention if they believe it is not in their best interest or if they have a valid claim to the asset in question. The court will then review the objection and make a determination based on the facts and applicable bankruptcy laws.
If a debtor fails to comply with their stated intention, such as surrendering an asset they intended to retain, the creditor may seek remedies available under bankruptcy laws. This could include seeking relief from the automatic stay or pursuing legal action to recover the asset.
Yes, an attorney experienced in bankruptcy law can provide valuable guidance and assistance in preparing and filing a statement of intention. They can help ensure that the document is accurate, complete, and in compliance with the applicable bankruptcy rules and regulations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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