Form 107 – Statement of Financial Affairs for Individuals Filing for Bankruptcy

Jurisdiction: Country: USA | Province/State: Federal

What is a Form 107 – Statement of Financial Affairs for Individuals Filing for Bankruptcy?

Form 107 is your sworn financial history for your bankruptcy case. It is an official form that asks you to disclose your income, payments to creditors, lawsuits, repossessions, gifts, transfers, business activity, and other key events. You submit it with your bankruptcy petition and schedules. The trustee, creditors, and the court use it to understand your financial story and identify any issues that affect your case.

You use Form 107 if you are an individual filing bankruptcy under Chapter 7, Chapter 11 (Subchapter V included), or Chapter 13. If you file jointly with your spouse, you complete a single combined form. Both of you sign it. If you ran a business as a sole proprietor, you still use this individual form, but you will answer business-related questions in the business section.

You need this form because bankruptcy focuses on transparency. The trustee must know what you earned, who you paid, and what changed hands before filing. The form helps the trustee find assets for creditors, review potential preference payments, and check for fraudulent transfers. It also gives context for your schedules. It explains events that schedules alone cannot.

You will use Form 107 in several routine situations. You may have had wages garnished a month before filing. You may have paid one credit card more than others within 90 days. You may have returned a car to a lender five months ago. You may have given your child a used car last year. You may have sold tools to a friend last summer. You may have operated a side business within the last eight years. In each case, you report these events here. The trustee then decides what matters to the estate and what does not.

If you have nothing to report for a question, you check “None.” That is a valid answer. The key is that your answers are complete, truthful, and consistent with your other forms. Form 107 is not a place to argue your case. It is a place to disclose facts cleanly and clearly.

When Would You Use a Form 107 – Statement of Financial Affairs for Individuals Filing for Bankruptcy?

You use Form 107 every time you file an individual bankruptcy case. The timing is early. You submit it with your petition, or within a short period after filing. Courts can dismiss cases if you ignore them. Treat it as essential, like your schedules and means test.

Consider how your situation fits. If you are a wage earner filing Chapter 7 after a job loss, you disclose your income for this year and the past two years. You also disclose any recent garnishments or lawsuits. If you are a tenant with an eviction case, you list that case here. If you are a landlord with rental income, you report it as income and disclose deposits you held for tenants. If you are a gig worker, you list business income and business activity within eight years. If you are a retired person on Social Security, you report that income and any other sources. If you are a small business owner closing a sole proprietorship, you disclose gross receipts, bookkeepers, inventory locations, and closed business accounts. If you are divorcing, you disclose domestic support payments and related proceedings. If you are a homeowner with a foreclosure pending or completed, you must disclose that foreclosure and any prior short sale or deed in lieu.

The form captures a defined look-back period for each topic. Payments to most creditors are limited to 90 days. Payments to insiders reach back one year. Transfers often reach back two years. Self-settled trust transfers reach back ten years. Lawsuits and garnishments focus on one year. Accounts closed, safe deposit boxes, and storage use a one-year window. Addresses go back three years. Business activity dates back eight years. That pattern tells you when an event belongs on the form.

Legal Characteristics of the Form 107 – Statement of Financial Affairs for Individuals Filing for Bankruptcy

Form 107 is legally binding. You sign it under penalty of perjury. You confirm that your answers are true and correct to the best of your knowledge. False statements can lead to denial of discharge, fines, or criminal charges. Omissions can be as serious as lies. If you discover an error, you should amend it quickly.

The form is enforceable because bankruptcy relies on mandatory disclosure. You have a duty to cooperate with the trustee. The trustee compares your answers to your schedules, tax returns, pay stubs, bank records, and testimony at the meeting of creditors. If your answers do not match, the trustee will ask questions and may demand documents. The court may also consider inconsistencies when deciding contested issues.

Several legal concepts guide your answers:

• Gross income vs. net income. The form asks for gross amounts, unless stated otherwise.
• Insider. An insider includes relatives and entities you control. It also includes your spouse’s relatives. Payments to insiders have a longer look-back.
• Ordinary course. You do not list routine business transfers in the “transfers outside the ordinary course” question. But be careful. Many personal transfers are not in the ordinary course.
• Preference. Payments to a creditor shortly before filing may be recoverable by the trustee. You still must disclose them.
• Fraudulent transfer. Transfers for less than fair value within the look-back can be avoidable. Full disclosure protects you.
• Redaction. Use the last four digits for account numbers when the form requests it. Do not attach documents with full numbers exposed.

You should answer even if an event feels minor. Gifts, casual sales, and small reimbursements can matter if they cross thresholds. If you cannot remember exact dates or amounts, use the best available records. Note that you may provide estimates when allowed. Do not guess wildly. Use bank statements, invoices, ledgers, calendars, and court papers to verify details.

For joint filers, both spouses must disclose combined information. That includes each spouse’s income, transfers, and payments. If you kept separate accounts, you still disclose both. If you are separated, you still disclose applicable events for the relevant periods.

How to Fill Out a Form 107 – Statement of Financial Affairs for Individuals Filing for Bankruptcy

Follow these steps. Take your time. Precision here saves trouble later.

1) Gather documents before you start.

• Last two years of tax returns.
• Pay stubs for the current year.
• Proof of other income for the current year.
• Bank and credit union statements for the last 12 months.
• Brokerage statements for the last 12 months.
• Titles, deeds, and closing documents for recent sales.
• Lawsuit papers, judgments, and garnishment notices.
• Repossession, foreclosure, or return notices.
• Divorce decrees and support orders.
• Records of gifts and charitable contributions.
• Business records, if you ran a business in the last eight years.
• Contact lists for creditors, attorneys, and bookkeepers.

2) Complete the heading.

• Enter your full legal name exactly as on the petition.
• If a joint case, enter your spouse’s full name.
• Include your mailing address and county.
• Add the case number if assigned.
• If you use a different name in business, list it when asked.

3) Part 1: Report your income.

• Employment or business income. Enter gross income for the year-to-date and the two prior years. List each employer or business. Provide names and addresses. For a sole proprietorship, enter gross receipts, not net. Use tax records to match the amounts.
• Other income. Enter income not from employment or business. Include Social Security, pensions, unemployment, disability, child support received, spousal support received, rental income, interest, dividends, refunds, and side work not otherwise listed. Provide totals by year and identify each source.

Tip: Use calendar-year totals for the prior two years. For the current year, the total from January 1 to the filing date.

4) Part 2: Disclose payments to creditors and others.

• Payments to creditors within 90 days. List each creditor you paid more than a set threshold to any one creditor during the 90 days before filing. Include credit cards, medical providers, landlords, utilities, car lenders, and anyone else you paid on a debt. Provide the creditor’s name, address, dates, amounts, and account details. The form focuses on total paid to each creditor, not single transactions.
• Payments to insiders within 1 year. List any payments to relatives or entities you control during the year before filing. Include repayments of personal loans to family or your own company. Name the insider, state the relationship, and list dates and amounts.
• Domestic support payments within 1 year. List payments for child support or alimony to a person or agency during the last year. Include wage withholding and direct payments.
• Bankruptcy-related payments within 1 year. List money paid for credit counseling, bankruptcy attorneys, petition preparers, or debt relief agencies.

Tip: Pull payment histories from your bank and credit card statements to avoid missing entries.

5) Part 3: List legal actions and collection activity.

• Lawsuits and administrative proceedings within 1 year. List cases where you were a party in the last year. Include eviction, foreclosure, collection, personal injury, divorce, and tax cases. Provide the court, case number, status, and nature.
• Garnishments and attachments within 1 year. Report wage garnishments, bank levies, and attachments. Give creditor names, dates, and amounts taken.
• Repossessions, foreclosures, and returns within 1 year. Report vehicles repossessed, homes foreclosed, or property surrendered. Include creditor names, property descriptions, dates, and any deficiency claims.
• Setoffs within 90 days. Report any creditor that took a setoff, such as a bank applying your funds to a loan.
• Receivers or custodians within 1 year. Report any receiver, custodian, or court seizure of your property.

Tip: Match dates to notices or docket entries to ensure accuracy.

6) Part 4: Report gifts and charitable contributions.

• Gifts within 2 years. List gifts to any person other than ordinary small gifts. Report gifts totaling more than a modest threshold to any one person during the look-back. Include vehicles, jewelry, cash, and debt forgiveness. State the recipient, relationship, date, and value.
• Charitable giving within 2 years. List contributions that exceed the ordinary small-gift threshold to any one organization. Include churches and nonprofits. State dates, amounts, and organizations.

Tip: If you do tithing, total your checks for each year and identify the recipient.

7) Part 5: Report losses within 1 year.

• Casualty, fire, theft, or gambling losses in the last year. Describe the event, date, property, value lost, and any insurance coverage. If insured, list the insurer and claim status.

Tip: If insurance paid you, that payment may be property of the estate. The trustee will ask.

8) Part 6: Report transfers and property you hold.

• Transfers outside the ordinary course within 2 years. List sales, trades, or gifts not part of routine living. Include selling a car to a friend, transferring title to family, or large private sales. Provide the transferee’s name, date, description, price, and relationship. Compare to the fair market value.
• Self-settled trust transfers within 10 years. If you put property into a trust that benefits you, report it. List the trustee, date, property, and terms.
• Property you control for someone else. Report property held for another person, such as a friend’s car in your garage or tools you store for a relative. Describe the property, owner, and location.

Tip: If you sold property through a marketplace, include buyer details if known. Use receipts or messages to reconstruct.

9) Part 7: Financial accounts, boxes, and storage.

• Closed financial accounts within 1 year. Report bank, credit union, and brokerage accounts closed, sold, or transferred. Provide the institution, last four digits, type, date closed, and balance or value at closing.
• Safe deposit boxes within 1 year. List where, what you kept, and the last access date.
• Storage units and other storage within 1 year. List locations and contents.

Tip: Include payment processors and digital wallets if you closed or transferred them.

10) Part 8: Environmental information.

• If you own or have owned property with possible hazardous materials, disclose it. This often applies if you ran a business that used chemicals or fuel. Provide the property’s location and the issue. If none, check “None.”

11) Part 9: Prior addresses within 3 years.

• List all addresses where you lived in the last three years. Provide dates for each. If you moved often, list each place with the month and year ranges.

12) Part 10: Prior bankruptcy cases within 8 years.

• If you filed bankruptcy before, list the district, case number, and filing date. Include any case filed by your spouse if filing jointly and living in the same household at the time.

13) Part 11: Business details if you operated a business within 8 years.

• Business identity. List legal names, trade names, and EINs. State the nature of the business and dates of operation. Include side gigs and sole proprietorships.
• Gross revenue. Report gross receipts for the current year and the two prior years. Use tax returns and ledgers.
• Financial management. List bookkeepers, accountants, or software used during the last two years. Provide names, addresses, and dates of service.
• Owners and control. If others managed finances or had control, list them. If you were the only owner, say so.
• Business property and inventory. Identify where inventory, equipment, or records were kept. Include storage units and third-party locations.
• Accounts and depositories. List business bank accounts closed within one year. Include payment processors.
• Transfers and withdrawals. Report owner draws or transfers not in the ordinary course when asked in the transfer sections.

Tip: Keep your business answers consistent with your Schedule A/B business assets and your Statement of Financial Affairs income entries.

14) Review for consistency and completeness.

• Cross-check totals with your tax returns and pay records.
• Confirm dates match lawsuits, repossessions, and foreclosures.
• Make sure payments within 90 days and one year are complete.
• Ensure all “None” boxes are checked where applicable.
• Verify names and addresses for creditors and recipients.

15) Sign and date the declaration.

• Read the declaration carefully. You are signing under penalty of perjury.
• If you are filing jointly, both of you must sign and date.
• Your attorney does not sign this form, but may review it with you.

16) Attach additional pages if needed.

• If you need more space, use the continuation pages the form provides.
• Clearly label the question number for each additional entry.

17) File the form with your petition or by the deadline.

• File it with the clerk as part of your case. If you filed the petition first, you usually have a short time to submit this form. Do not miss the deadline. Missing forms can cause dismissal.

18) Keep copies and bring them to your trustee meeting.

• Bring a copy to your meeting of creditors. The trustee will likely refer to it.
• Be ready to explain any large payments, transfers, losses, or business activity.
• If you spot an error before the meeting, amend as soon as possible.

Practical examples help you decide what to include:

• You paid a credit card $800 two months before filing. List it as a payment within 90 days.
• You repaid your sister $1,200 six months ago. List it as an insider payment within one year.
• Your truck was repossessed eight months ago. List the repossession under repossessions and returns.
• You tithed $300 monthly last year. Total it and list it as charitable contributions if the totals pass the threshold for disclosure.
• You sold a motorcycle to a neighbor for $1,000 last spring. List it as a transfer outside the ordinary course within two years. Compare that price to the market value in your description.
• Your wages were garnished for a judgment three months before filing. List the garnishment with dates and amounts.

Final tips:

• Use plain descriptions. Avoid jargon. State facts.
• Do not omit small events because they feel unimportant. The look-back rules control.
• If you are unsure whether to list something, list it.
• Keep your tone factual. This is not the place to argue fault or fairness.
• Accuracy protects your discharge. Transparency builds trust with your trustee.

Legal Terms You Might Encounter

• Debtor means you, the person filing the case. Form 107 asks about your income, transfers, and financial history. You answer for yourself, and for a joint filer if you file together.
• Trustee is the person who reviews your case. The trustee uses Form 107 to spot transfers, lawsuits, and assets. Clear answers help the trustee close issues faster.
• Insider is someone close to you, like a relative or a business you control. Form 107 asks about payments and transfers to insiders. These entries get special scrutiny.
• Transfer means moving property or money to someone else. It includes sales, gifts, trades, and liens. Form 107 asks you to list certain transfers within set time windows.
• Preference is a payment made to a creditor before filing that favors them over others. Form 107 asks about recent payments to creditors and insiders. Full disclosure helps avoid disputes.
• Executory contract is a contract where both sides still owe performance, like a gym membership. An unexpired lease is a current lease, like an apartment lease. Form 107 asks you to list both.
• Garnishment, levy, and setoff are ways creditors took your money before filing. Garnishment takes wages. A levy takes funds held by another. A setoff nets debts against your deposits. Form 107 asks for these events.
• Gross income means income before taxes and deductions. Form 107 asks for gross income by year and source. Use pay records and tax documents to support your numbers.
• Business interest means any role in a business, even if it is inactive. That includes ownership, partnership, or management roles. Form 107 asks about your business ties within defined years.
• Property held for another means items you possess that belong to someone else. Form 107 asks you to list that property and who owns it. This prevents confusion about ownership.

FAQs

Do you have to list small gifts or donations?

Yes, if they meet the thresholds on the form. When unsure, include the gift with a short explanation. List the recipient, date, and value. Keep proof, like receipts or statements.

Do you need to include your spouse’s information if you file alone?

You report your own income and history on this form. If you file jointly, include both spouses’ information. If you file alone, do not add non-filing spouse income here. Another form may ask for household income.

Do you need to list closed bank accounts?

Yes. List accounts you closed, sold, or transferred within the look-back period. Include banks, credit unions, and payment apps that operate like accounts. Provide the last four digits, closing date, and balance at closing.

Do you have to disclose CashApp, PayPal, or crypto wallets?

Yes, if you held balances or closed wallets during the required periods. Treat them like financial accounts for disclosure purposes. Keep transaction histories. Identify the platform and the relevant dates.

Do you need to list old businesses you no longer run?

Yes, if you had a role within the period the form covers. Include names, EINs if known, and your role. Note whether the business still operates. Provide addresses or “unknown” if records no longer exist.

Do you have to report lawsuits, garnishments, or repossessions?

Yes. Report any you were involved in within the time windows on the form. Include case names, courts, and case numbers if available. For garnishments and repossessions, list dates and who took the property or funds.

Do you attach documents to Form 107?

Usually, you do not attach documents to this form. Keep supporting records ready for the trustee. Bring them to your meeting if asked. Follow any local rules for submitting documents.

Do you need to update the form if something changes?

Yes. File an amended Form 107 if you find errors or omissions. Mark it as amended and correct the entries. File it promptly and notify the required parties. This helps avoid delays or objections.

Checklist: Before, During, and After the Form 107 – Statement of Financial Affairs for Individuals Filing for Bankruptcy

Before signing: Information and documents to gather

• Your full legal name and any prior names used.
• Current and recent prior addresses.
• Pay records and tax documents to cover the required years.
• Proof of any non-wage income, like benefits or rental income.
• Bank and credit union statements, including closed accounts.
• Payment app and crypto account histories and closure records.
• Records of payments to creditors during the required periods.
• Records of payments or transfers to relatives or close associates.
• Bills of sale, deeds, or contracts for property you sold or gave away.
• Lawsuit and judgment documents, including case numbers and outcomes.
• Notices or records of garnishments, levies, setoffs, and repossessions.
• Foreclosure or eviction notices and sale confirmations.
• Loss reports for fire, theft, gambling, or casualty events.
• Gift and charitable contribution receipts and acknowledgments.
• Lists of executory contracts and unexpired leases.
• Details of any safe deposit boxes or storage units.
• Descriptions of property you hold for someone else.
• Business details for any roles held within the look-back period.
• Any environmental or hazardous property information, if applicable.
• A complete copy of your other bankruptcy schedules for cross-checking.

During signing: Sections to verify

• Names and dates. Ensure consistency with your other forms.
• Time periods. Confirm each answer covers the full window asked.
• Income entries. Use gross amounts and the right year-to-date period.
• Closed accounts. Include account type, last four digits, and closing date.
• Payments to creditors. Confirm dates, amounts, and recipients.
• Payments and transfers to insiders. Identify the relationship.
• Lawsuits and administrative proceedings. Add court and case numbers.
• Garnishments, levies, and setoffs. List dates and who took funds.
• Repossessions, foreclosures, and returns. Include property descriptions.
• Gifts and donations. Note recipients and values.
• Losses and recoveries. Add insurance details if you received payment.
• Contracts and leases. Identify counterparties and current status.
• Business involvement. Enter names, roles, and dates.
• “None” boxes. Only check when you truly have nothing to report.
• Continuation pages. Number and label them clearly if you need more space.
• Consistency. Cross-check with your schedules for alignment.
• Final review. Read each answer aloud to catch small errors.
• Signature and date. You sign under penalty of perjury.

After signing: Filing, notifying, and storing

• File the signed form with your bankruptcy petition and schedules.
• If you file electronically, follow the court’s signature procedures.
• Save a complete copy with all continuation pages.
• Keep digital PDFs and paper copies in a secure folder.
• Note your case number on your copy for easy reference.
• Provide copies to the trustee upon request.
• Track deadlines for your required meeting and any document requests.
• If you discover an error, file an amended form quickly.
• Keep records of all filings and confirmations.
• Do not ignore trustee letters or calls; respond promptly.

Common Mistakes to Avoid

Don’t forget closed or rarely used accounts.

• Mistake: Leaving out closed bank, payment app, or crypto accounts.
• Consequences: Trustee inquiries, delays, and possible continued meetings.
• Fix: List all closures within the required period, with dates and balances.

Don’t guess dates or amounts.

• Mistake: Estimating income, transfers, or payments without records.
• Consequences: Inconsistent entries and credibility issues.
• Fix: Pull statements, pay records, and receipts before you fill the form.

Don’t omit payments to family or friends.

• Mistake: Hiding or forgetting personal repayments or gifts.
• Consequences: Preference or fraudulent transfer concerns.
• Fix: Disclose all required payments and transfers to insiders.

Don’t ignore lawsuits, garnishments, or repossessions.

• Mistake: Failing to list legal actions or property taken.
• Consequences: Surprises at your meeting and potential objections.
• Fix: Review mail, court records, and pay stubs for any events.

Don’t let your answers conflict with your schedules.

• Mistake: Different stories between Form 107 and your schedules.
• Consequences: Extra document requests and trust issues.
• Fix: Cross-check names, dates, values, and property descriptions.

What to Do After Filling Out the Form

Confirm your documents are complete.

• Check that Form 107 matches your other schedules.
• Ensure all continuation pages are attached and numbered.
• Verify your signature and date.

File the form with your case.

• Submit it with your petition and the rest of your forms.
• If you file electronically, follow the court’s rules for signatures.
• Keep the filing confirmation and case number.

Prepare for trustee review.

• The trustee reads your answers to spot follow-up issues.
• Gather bank statements, tax returns, and pay records for quick access.
• Keep closing statements for any transfers or sales you disclosed.

Attend your meeting.

• Bring government-issued photo ID and proof of Social Security number.
• Bring the documents the trustee requested in advance.
• Be ready to explain any transfers, payments, or unusual entries.

Respond to requests.

• If the trustee asks for more documents, provide them by the deadline.
• Keep a log of what you sent and when you sent it.
• Ask for confirmation that the trustee received your documents.

Amend if needed.

• If you find a mistake or missed entry, file an amended Form 107.
• Mark it as amended and correct only the affected parts.
• File it promptly and send copies to the required parties.

Avoid new transfers.

• Do not move assets in ways that conflict with your disclosures.
• Ask questions before taking any unusual financial steps.
• Keep your records organized until your case closes.

Keep records after filing.

• Save your filed forms, confirmations, and trustee correspondence.
• Keep them for several years in case issues arise later.
• Note any deadlines or hearings on a simple calendar.

Expect possible follow-up.

• The trustee may ask about large payments, transfers, or losses.
• Clear documentation speeds up resolution.
• Accurate Form 107 answers reduce surprises at your meeting.

Stay consistent.

• Align your testimony at the meeting with your written answers.
• If facts change, amend promptly and tell the trustee.
• Consistency builds credibility and helps your case move forward.