The purpose of this form is to show creditors the dire financial situation that the debtor is in so as to induce the creditors to compromise or write off the debt due.
An Arkansas Debtor's Affidavit of Financial Status to Induce Creditor to Compromise or Write off the Debt which is Past Due — Assets and Liabilities is a legal document that allows debtors in Arkansas to provide a detailed overview of their financial situation to creditors, in an effort to negotiate a compromise or write-off of a past-due debt. The affidavit requires debtors to disclose their assets and liabilities accurately and completely. Keywords: Arkansas, Debtor's Affidavit, Financial Status, Induce Creditor, Compromise, Write off, Debt, Past Due, Assets, Liabilities. Different types of Arkansas Debtor's Affidavit of Financial Status to Induce Creditor to Compromise or Write off the Debt which is Past Due — Assets and Liabilities may include: 1. Simple Affidavit of Financial Status: This affidavit is a basic version wherein debtors provide an overview of their current financial situation, including a list of assets, liabilities, and income. 2. Detailed Affidavit of Financial Status: This type of affidavit delves deeper into the debtor's financial situation. It may require more comprehensive information, including detailed lists of assets (such as vehicles, real estate, bank accounts, investments), liabilities (such as loans, credit card debt, mortgages), and income sources (employment, self-employment, rental income). 3. Affidavit of Financial Hardship: This specific affidavit highlights the debtor's financial hardships that prevent them from repaying their debts. It may include documentation or additional evidence showcasing the debtor's inability to meet their financial obligations. 4. Affidavit of Insolvency: In cases where the debtor's liabilities outweigh their assets, and they lack the means to repay the debts, this affidavit establishes the debtor's insolvency. It provides a comprehensive overview of all the debtor's assets, liabilities, income, and expenses, demonstrating their inability to repay the debts entirely. 5. Affidavit for Debt Settlement: This type of affidavit is specific to debt settlement negotiations. It includes details about the debtor's assets and liabilities, as well as an offer of a reduced payment to the creditor in exchange for a partial or complete debt discharge. 6. Affidavit for Debt Discharge: In certain situations, debtors may request a discharge of their debts entirely due to extenuating circumstances. This affidavit outlines the debtor's financial status and explains why a complete write-off of the debt would be in the best interest of both parties. It is important to note that the specific requirements and variations of these affidavits may vary based on the creditor and the circumstances of the debt. It is advisable to seek legal counsel or guidance when preparing such affidavits to ensure accuracy and effectiveness.
