STATEMENT OF INTENTION ANALYSIS & WORKSHEET

Chapter 7 Secured Property Options

Case Name: _________________________________
Case Number: _________________________________
Filing Date: ____/____/________
Attorney: _________________________________

PART 1: STATUTORY REQUIREMENTS

Reference: 11 U.S.C. Section 521(a)(2)

1.1 Filing Deadline

Statement of Intention Filing Deadline:
The earlier of:
- 30 days after the date of filing the petition, OR
- The date of the meeting of creditors under Section 341(a)

Calculated Deadline: ____/____/________

1.2 Performance Deadline

Performance of Intention Deadline:
- 30 days after the first date set for the meeting of creditors under Section 341(a)

Section 341 Meeting Date: ____/____/________
Performance Deadline: ____/____/________

1.3 Consequences of Non-Compliance

☐ Client advised: Failure to file Statement of Intention or perform stated intention may result in:
- Automatic termination of the automatic stay as to the property - 11 U.S.C. Section 362(h)
- Creditor may repossess/foreclose without further court order
- Property no longer protected by bankruptcy estate

PART 2: SECURED PROPERTY INVENTORY

2.1 Real Property

2.2 Vehicles

2.3 Other Secured Personal Property

PART 3: INTENTION OPTIONS ANALYSIS

Reference: 11 U.S.C. Sections 521(a)(2), 524(c), 722

3.1 Option 1: SURRENDER

11 U.S.C. Section 521(a)(2)(A)

Definition: Debtor gives up the property to the secured creditor and the debt is discharged.

When to Choose:
☐ Property is "underwater" (debt exceeds value significantly)
☐ Cannot afford ongoing payments
☐ Property no longer needed or wanted
☐ High maintenance/insurance costs
☐ Property in poor condition

Process:
1. Mark "Surrender" on Statement of Intention
2. Coordinate with creditor for return of property
3. Deficiency balance discharged (unless excepted debt)

Advantages:
- Eliminates all liability for the debt
- No further payments required
- Clean break from obligation

Disadvantages:
- Loss of property
- May need replacement (especially vehicles)
- Credit impact from surrender notation

3.2 Option 2: REAFFIRM

11 U.S.C. Section 524(c)

Definition: Debtor enters new agreement with creditor to remain personally liable for the debt.

When to Choose:
☐ Want to keep the property
☐ Can afford current payments
☐ Property value approximately equals debt
☐ Cannot pay lump sum for redemption

Reaffirmation Agreement Requirements:
1. Agreement made before discharge is granted
2. Contains clear disclosure of amount reaffirmed
3. Debtor has not rescinded within 60-day period
4. If not represented by attorney - court approval required
5. If represented by attorney - must certify no undue hardship

Court Approval Required When:
☐ Debtor not represented by attorney
☐ Presumption of undue hardship arises (budget shows negative disposable income)
☐ Debtor waives right to rescind

Hearing Date (if required): ____/____/________

Attorney Certification Checklist:
☐ Debtor voluntarily made reaffirmation agreement
☐ Reaffirmation does not impose undue hardship on debtor or dependents
☐ Debtor fully informed of legal effect of reaffirmation
☐ Debtor fully informed of legal effect of default

Advantages:
- Keep property
- May improve/maintain relationship with creditor
- May help rebuild credit
- Can negotiate better terms

Disadvantages:
- Remain personally liable
- Deficiency possible if default later
- Debt survives bankruptcy

3.3 Option 3: REDEEM

11 U.S.C. Section 722

Definition: Debtor pays the secured creditor the current replacement value of the property in one lump sum payment, regardless of amount owed.

Eligibility Requirements:
☐ Individual debtor in Chapter 7
☐ Tangible personal property (NOT real estate)
☐ Property intended primarily for personal, family, or household use
☐ Property is either exempt OR abandoned by trustee
☐ Debt is a dischargeable consumer debt

When to Choose:
☐ Owe significantly more than property is worth
☐ Can obtain lump-sum payment (722 redemption loan or savings)
☐ Want to keep property free of lien

Redemption Value Calculation:
Reference: 11 U.S.C. Section 506(a)(2)

722 Redemption Loan Providers:
- 722 Redemption Funding
- Fresh Start Funding
- US Finance
- Others specializing in bankruptcy redemption

Process:
1. Determine current replacement value (retail)
2. File Motion to Redeem
3. If contested, court will determine value
4. Pay redemption amount
5. Lien released, property retained

Advantages:
- Pay current value, not full debt
- Property owned free and clear after payment
- May result in significant savings

Disadvantages:
- Must pay lump sum at time of redemption
- 722 redemption loans have high interest rates
- Court hearing may be required if contested

3.4 Option 4: RETAIN AND CONTINUE PAYMENTS

May not be available in all circuits - check local law

Definition: Debtor retains property and continues making regular payments without reaffirmation.

Circuit Split:
☐ Available in: 2nd, 4th, 9th, 10th Circuits (historically)
☐ Not available in: Many circuits post-BAPCPA
☐ Check current law in this circuit: _________________

When to Choose:
☐ Want to keep property without personal liability
☐ Do not want to reaffirm
☐ Willing to risk creditor demanding surrender

Note: After BAPCPA (2005), this option is limited. Creditors may:
- Demand surrender or reaffirmation
- Seek stay relief if neither performed

3.5 Option 5: CLAIM EXEMPT AND AVOID LIEN

11 U.S.C. Section 522(f)

Definition: Avoid judicial lien or non-possessory, non-purchase money security interest that impairs exemption.

Eligibility Requirements:
☐ Lien is a judicial lien, OR
☐ Lien is a non-possessory, non-purchase money security interest in:
- Household furnishings, goods, appliances
- Wearing apparel
- Professional books or tools of trade
- Health aids
☐ Lien impairs an exemption to which debtor would be entitled

Lien Impairment Calculation:
11 U.S.C. Section 522(f)(2)(A)

If TOTAL exceeds Value: Lien impairs exemption and can be avoided

Process:
1. File Motion to Avoid Lien (separate motion - see template)
2. Serve on lienholder
3. Obtain court order
4. Record avoidance order if real property

PART 4: PROPERTY-BY-PROPERTY ANALYSIS

Property 1: _________________________________

Options Considered:
☐ Surrender - Savings: $_______ /month
☐ Reaffirm - Continue paying $_______ /month for _____ months
☐ Redeem - Lump sum needed: $_______
☐ Avoid Lien - Applicable? ☐ Yes ☐ No

Debtor's Preference: _________________________________

Attorney Recommendation: _________________________________

SELECTED INTENTION: ☐ Surrender ☐ Reaffirm ☐ Redeem ☐ Avoid Lien

Property 2: _________________________________

Options Considered:
☐ Surrender - Savings: $_______ /month
☐ Reaffirm - Continue paying $_______ /month for _____ months
☐ Redeem - Lump sum needed: $_______
☐ Avoid Lien - Applicable? ☐ Yes ☐ No

Debtor's Preference: _________________________________

Attorney Recommendation: _________________________________

SELECTED INTENTION: ☐ Surrender ☐ Reaffirm ☐ Redeem ☐ Avoid Lien

Property 3: _________________________________

Options Considered:
☐ Surrender - Savings: $_______ /month
☐ Reaffirm - Continue paying $_______ /month for _____ months
☐ Redeem - Lump sum needed: $_______
☐ Avoid Lien - Applicable? ☐ Yes ☐ No

Debtor's Preference: _________________________________

Attorney Recommendation: _________________________________

SELECTED INTENTION: ☐ Surrender ☐ Reaffirm ☐ Redeem ☐ Avoid Lien

PART 5: SUMMARY OF INTENTIONS

5.1 Statement of Intention Summary

5.2 Action Items

PART 6: CLIENT ACKNOWLEDGMENT

I have reviewed the options for each secured property with my attorney. I understand:

1. Surrender: I give up the property and my personal liability is discharged
2. Reaffirmation: I remain personally liable for the debt even after bankruptcy
3. Redemption: I must pay current replacement value in one lump sum
4. The deadlines for filing and performing my stated intentions
5. The consequences of failing to perform my stated intentions

I have selected the intentions marked above after careful consideration of my financial circumstances.

Debtor 1 Signature: _________________________________ Date: ____/____/________

Debtor 2 Signature: _________________________________ Date: ____/____/________

PART 7: ATTORNEY NOTES

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

Attorney Signature: _________________________________ Date: ____/____/________

Template Version 1.0 - Updated January 2026
References: 11 U.S.C. Sections 362(h), 521(a)(2), 522(f), 524(c), 722; Official Form 108