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 Tennessee 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 debtors in Tennessee can use as a means to request their creditors to consider compromising or writing off their past due debts. This affidavit provides a comprehensive overview of the debtor's financial status by detailing their assets and liabilities. By submitting this affidavit, debtors aim to demonstrate their present financial circumstances, urging creditors to reassess the feasibility of collecting the full amount owed. This affidavit consists of various sections where debtors are required to provide a detailed account of their financial situation, including their assets and liabilities, as follows: 1. Personal Information: This section involves providing personal details such as name, address, contact information, and social security number. 2. Overview of Debts: This part requires the debtor to list all the past due debts they wish to have compromised or written off. It is important to include accurate and up-to-date information about the debts, such as the creditor's name, account number, outstanding balance, and the nature of the debt. 3. Monthly Income: Debtors must disclose their monthly income from all sources, including employment, investments, alimony, and any government assistance programs they may be receiving. 4. Monthly Expenses: In this section, debtors are required to outline their monthly expenses, including rent/mortgage payments, utilities, groceries, insurance premiums, transportation expenses, medical bills, and other necessary costs. 5. Assets: This category encompasses all assets owned by the debtor, including but not limited to, real estate properties, vehicles, bank accounts, investments, retirement accounts, and valuable personal items. 6. Liabilities: Debtors need to identify all outstanding liabilities they currently have, such as mortgages, car loans, credit card debts, student loans, medical bills, and any other outstanding loans. 7. Affirmation statement: Debtors must sign an affirmation stating that all the information provided in the affidavit is true and accurate to the best of their knowledge. Different types or variations of this affidavit may be titled differently or have specific additional requirements depending on the jurisdiction or specific circumstances. However, the general purpose remains the same — to present an honest and comprehensive overview of the debtor's financial status to persuade creditors to consider compromising or writing off the past due debts.
