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 Massachusetts 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 used by debtors in Massachusetts to provide a comprehensive overview of their financial situation. This affidavit is crucial when seeking to negotiate a compromise or request a write-off of a past due debt. The purpose of the Massachusetts Debtor's Affidavit of Financial Status is to present an accurate representation of the debtor's financial circumstances, including their assets and liabilities. By disclosing this information, debtors can demonstrate their inability to pay the debt in full and justify their request for compromise or write-off to the creditor. Keywords: Massachusetts, Debtor's Affidavit, Financial Status, Induce Creditor, Compromise, Write off, Past Due, Assets, Liabilities. Different types of Massachusetts 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. Individual Debtor's Affidavit: This affidavit is completed by an individual debtor who is seeking a compromise or write-off of their past due debt. It requires the debtor to provide detailed information about their income, expenses, assets, and liabilities. 2. Joint Debtor's Affidavit: In cases where there are joint debtors, such as in a co-signed loan, both debtors may be required to complete a Joint Debtor's Affidavit. This document provides a comprehensive overview of the financial status of both parties, reinforcing the need for compromise or write-off. 3. Business Debtor's Affidavit: If the debtor is a business entity or has significant business debts, a Business Debtor's Affidavit may be necessary. This affidavit provides detailed financial information about the debtor's business, including assets, liabilities, income, and expenses. 4. Real Estate-specific Debtor's Affidavit: In situations where the debt is secured by real estate, a Real Estate-specific Debtor's Affidavit may be required. This affidavit focuses on the debtor's real estate assets, including property values, mortgages, liens, and rental income. These various types of affidavits cater to different debtor situations, but all serve the ultimate purpose of providing a comprehensive overview of the debtor's financial status, assets, and liabilities to facilitate the negotiation of compromise or write-off with the creditor.
