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.
The California 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 provides a detailed account of an individual's financial situation to persuade the creditor to settle or forgive the outstanding debt. This affidavit is used as a means for debtors to present evidence of their current financial status and potentially negotiate with their creditors for a compromise or write-off of the outstanding debt. It is crucial to provide accurate and comprehensive information in the affidavit to establish a genuine financial need. The affidavit typically includes the following relevant details: 1. Identification Information: The debtor's full name, address, contact information, and any relevant identification numbers (such as social security number or taxpayer identification number). 2. Current Assets: A comprehensive list of all the debtor's current assets, including but not limited to bank accounts, investments, real estate, vehicles, valuable personal property, and any other assets that hold monetary value. 3. Liabilities and Creditors: A detailed breakdown of the debtor's liabilities, including outstanding debts, loans, credit card balances, mortgages, student loans, and any other financial obligations. It is essential to disclose all creditors and the specific amounts owed. 4. Income and Expenses: The debtor must provide thorough information regarding their current income sources, such as employment earnings, self-employment income, rental income, government benefits, or any other regular sources of income. Additionally, the affidavit should outline all monthly expenses, including rent or mortgage payments, utilities, healthcare costs, transportation expenses, and other necessary living expenses. 5. Supporting Documentation: It is vital to attach supporting documents to validate the information provided in the affidavit. This may include recent bank statements, pay stubs, tax returns, credit reports, medical bills, and any other relevant financial records. It's important to note that there may be additional types of California Debtor's Affidavit of Financial Status to Induce Creditor to Compromise or Write off the Debt which is Past Due — Assets and Liabilities, depending on the specific circumstances or legal requirements. Some variations may include unique formats for different types of debts, such as credit card debt, medical debt, mortgage debt, or personal loans. Seeking legal advice or consulting with a debt resolution specialist is highly recommended when preparing and submitting this affidavit, as it can affect the outcome of your debt negotiation process. Additionally, it is crucial to understand that the acceptance or rejection of a compromise or debt write-off is at the creditor's discretion and depends on various factors, including the information provided in the affidavit and the creditor's policies.
