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.
Rhode Island 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 serves as a formal declaration by a debtor in Rhode Island of their current financial situation. This affidavit is presented to creditors as an attempt to negotiate a compromise or write-off of a past-due debt. The purpose of the affidavit is to provide an accurate and comprehensive overview of the debtor's assets and liabilities, giving the creditor a clear understanding of the debtor's financial standing. By submitting this document, the debtor seeks to demonstrate their inability to repay the debt in full and make a case for a negotiated settlement or debt forgiveness. The content of a Rhode Island Debtor's Affidavit of Financial Status to Induce Creditor to Compromise or Write off the Debt which is Past Due — Assets and Liabilities typically includes the following information: 1. Debtor's Personal Information: This section includes the debtor's full legal name, address, contact details, and any relevant identification numbers, such as a social security number. 2. Debt Details: The debtor should provide a detailed description of the debt being considered for compromise or write-off, including the creditor's name, account number, outstanding balance, and any applicable interest or fees. 3. Assets: This section outlines the debtor's assets, such as real estate, vehicles, bank accounts, investments, stocks, bonds, or any other valuable possessions. Each asset should be described in detail, including its estimated current value and any outstanding loans or liens against it. 4. Liabilities: Here, the debtor discloses all outstanding debts and financial obligations, including mortgages, credit card debts, personal loans, student loans, or any other liabilities. Each liability should be listed with the creditor's name, account number, outstanding balance, monthly payment, and status (past due, current, etc.). 5. Income and Expenses: The debtor provides an overview of their monthly income from all sources, including employment, self-employment, social security, retirement benefits, alimony, child support, or any other income. Additionally, the debtor must list all monthly expenses, including rent or mortgage payments, utility bills, transportation costs, insurance premiums, medical expenses, and any other necessary living expenses. 6. Declarations and Signatures: The affidavit should include a declaration by the debtor that the information provided is true, accurate, and complete to the best of their knowledge. It must be signed and dated by the debtor in the presence of a notary public or other authorized individual. Different types of Rhode Island Debtor's Affidavit of Financial Status to Induce Creditor to Compromise or Write off the Debt which is Past Due — Assets and Liabilities may vary in format or additional sections, depending on the specific requirements of the creditor or the nature of the debt being addressed. However, the core elements mentioned above generally remain consistent across different types of affidavits.
