There are certain questions on the Statement of Financial Affairs that have never applied to cases on which I have worked, so I realize I have sort of “tuned them out.” Ask me which questions have to do with garnishments, attorney fees, income, court cases, business info, etc. and I can tell you the question number in an instant.
But when I saw the title of a blog post titled “Statement of Financial Affairs: Question 6,” my mind drew a blank. What is question number 6?
Well, it’s actually two questions: 6a is about assignment of property for the benefit of creditors (“ABC”) and 6b is about receiverships. Okay, for extra credit I’m going to give the official form instructions:
6a: Describe any assignment of property for the benefit of creditors made within 120 days immediately preceding the commencement of this case.
6b: List all property which has been in the hands of a custodian, receiver, or court-appointed official within one year immediately preceding the commencement of this case.
On the Bankruptcy Law Network, Attorney Brett Weiss gives an explanation of ABCs and receiverships. As a matter of fact, his post is part of a series of blogs about the Statement of Financial Affairs.
As Attorney Weiss states at the closing of his blog post:
In the vast majority of individual cases, ABCs and receiverships will not be present.
So good to know, but will likely never have to enter info for SOFA #6.