About Bankruptcy Forms
Tradition and proper procedure are important to courts, in part because it simplifies the task of organizing the huge number of cases and documents presented to them every year. Bankruptcy, in particular, is a process that's dominated by a paper trail of forms. Bankruptcy forms must not only be filled out correctly, but filed in a timely fashion according to the rules of procedure.
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Function
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The function of bankruptcy forms is to formally petition a court for bankruptcy protection, prove eligibility to receive such consideration, and to facilitate the proceedings. From a legal perspective, courts use forms and adhere to strict procedure to help ensure that everyone receives equal protection. In addition to the voluntary petition which initiates a bankruptcy, several specific form schedule sheets are used to specify all the debtor's assets and liabilities. Others specify the type of bankruptcy being sought or provide an outline for any type of motion brought before the judge.
Significance
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Bankruptcy proceedings exist almost entirely through forms and paperwork; unless there is a controversy, there's usually very little in the way of hearings and testimony. Even if there is, the forms are of primary significance, and errors or omissions can result in a bankruptcy case being dismissed prematurely without discharging debts. Knowingly lying on the forms can lead to criminal charges.
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Identification
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Bankruptcy forms are usually easy to identify because they are all labeled with a capital 'B' followed by a number. Thus, B1 is the Voluntary Petition, B3A and B3B are applications to either waive the filing fee or pay in installments, and B4 is a list of the twenty largest unsecured claims. Even exhibits to these forms are labeled in this way, so form B1D, the Statement Of Compliance With Credit Counseling Requirement, is understood as exhibit D of form B1, the Voluntary Petition.
Types
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Form B9 is where the different types of bankruptcy begin to diverge in the forms. The essential difference between the two types of consumer bankruptcy is that, under Chapter 7, all nonexempt assets are liquidated and any debts that remain unpaid are discharged. The first four versions of B9 indicate whether the bankruptcy petitioner is a corporation, individual, and whether they have any assets eligible for liquidation. The next four divisions of Form B9 involve filings for Chapter 11 reorganization, and hinge again on whether the petitioner is an individual or corporation. The remaining three B9 iterations are reserved for the less common Chapter 12 and 13 filings.
Considerations
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It's not required that a debtor obtain legal representation for a bankruptcy proceeding, but given the complexity of the forms and the significance of each distinction in them, many filers at least consult with a legal professional about their options. Many law offices will complete the necessary forms for a filer, sometimes taking responsibility for the filing deadlines even if they don't appear on their behalf before the judge or trustee. Some individuals, if they are comfortable interpreting the requirements of the court and making important decisions on their own, may choose to go it alone, appearing pro se, that is, for themselves.
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