Statement Of Intention Meaning
A Statement of Intention is the form an individual Chapter 7 bankruptcy debtor uses to say what they plan to do with property securing debts and with unexpired personal-property leases. It tells the court and affected creditors about the intended treatment; filing it does not, by itself, complete that treatment.
The statement often matters for consumer debts, such as a secured car loan, and for collateral that is property of the estate. The practical question is whether the debtor intends to give up the property or pursue an available way to keep it—and what further action that choice requires.
What Does the Official Form Cover?
The federal form is Official Form 108, Statement of Intention for Individuals Filing Under Chapter 7. The issuing court website provides the form and its instructions.
The form has separate parts for:
- Secured claims: Identify the creditor and collateral using Schedule D, indicate the intended treatment, and state whether the property was claimed as exempt on Schedule C.
- Unexpired personal-property leases: Use the information from Schedule G and indicate whether the lease will be assumed. Examples include a leased car or appliance. The form expressly excludes real-estate leases from this part.
Form 108 is for individuals filing Chapter 7, not a Chapter 13 repayment plan. It also does not replace the schedules that disclose assets, debts, exemptions, or contracts. Both debtors in a joint case must sign and date it.
What Do Surrender, Reaffirm, Redeem, and Retain Mean?
These choices describe intended treatment, not four universally available rights:
- Surrender: State that the property will be surrendered to the secured creditor. Checking the box communicates the intention; it is not the same as completing the follow-up steps. The official individual-form instructions also distinguish surrender from discharge: protection against a remaining balance depends on the bankruptcy discharge and whether the debt is dischargeable.
- Reaffirm: Seek to remain legally obligated on a debt through a separate reaffirmation agreement with the creditor. Under 11 U.S.C. §524(c), enforceability depends on requirements including making the agreement before discharge, receiving required disclosures, filing it, and satisfying the applicable representation, approval, and other conditions. A signed Form 108 is not that agreement.
- Redeem: For qualifying property, pay the allowed secured claim in full at redemption. Section 722 concerns tangible personal property intended primarily for personal, family, or household use, securing a dischargeable consumer debt, where the property is exempt or has been abandoned. The official instructions explain the court-motion process and lump-sum payment. This is not a general right to redeem a house or simply restart monthly loan payments.
- Retain and explain: Identify another intended basis for keeping the property where the law permits it. The form includes space for an explanation, but that space does not create a blanket right to keep collateral merely by continuing payments. The official instructions identify avoiding a qualifying lien under §522(f) as another possible action. The applicable property, debt, and follow-up requirements still matter.
Reaffirmation can preserve personal repayment liability that otherwise would be discharged. Redemption requires qualifying property and payment. Those consequences explain why choosing a box and completing the legal process are separate decisions.
Filing, Delivery, and Follow-Up Have Different Deadlines
11 U.S.C. §521(a)(2) and Bankruptcy Rule 1007(b)(2) distinguish these steps:
Step | Ordinary timing and requirement |
|---|---|
File the statement | Within 30 days after filing the Chapter 7 petition, or on or before the creditors’ meeting date, whichever is earlier. |
Serve the statement | Before or upon filing, serve the trustee and creditors named in it. Form 108 also directs sending copies to the listed creditors and lessors. |
Perform the stated intention | Within 30 days after the first date set for the §341(a) creditors’ meeting. This is a different clock from the filing deadline. |
The court can extend the §521(a)(2) periods for cause, but the statute requires the extension to be fixed within the applicable original period. Do not assume that an unfinished process automatically extends a deadline.
Other deadlines can apply to the chosen action. Rule 4008 generally requires filing a reaffirmation agreement within 60 days after the first date set for the creditors’ meeting and allows court extensions. That filing rule does not replace the separate statement, performance, or before-discharge requirements. Section 521(a)(6) also contains a distinct 45-day rule, measured after the first creditors’ meeting, for specified personal property securing an allowed purchase-price claim. It should not be confused with §521(a)(2)’s 30-day clocks.
If the intended treatment changes, Rule 1009(b) permits amendment before the §521(a)(2) time expires and requires notice to the trustee and affected entities. It does not supply an unlimited opportunity to amend this statement until the case closes.
When This Matters Most: Cars, Homes, and Leases
A Financed Car You Want to Keep
Illustrative scenario: A debtor identifies a car lender and selects an intention to reaffirm. The next step is a separate agreement and the applicable §524 process; the selected box does not make the creditor agree or establish enforceability. If redemption is considered instead, §722’s eligibility and lump-sum requirements must be addressed. Continuing payments alone should not be treated as proof that the required steps are complete.
A House Securing a Mortgage
A mortgage is a secured debt, so the intended treatment belongs in the secured-claims part of the form. However, a house is real property: the personal-property redemption provision in §722 does not provide a way to redeem it, and the personal-property consequences in §362(h) should not be applied to it as though it were a car. Filing the statement does not itself decide the mortgage’s treatment or establish a right to keep the house.
A Leased Car or Appliance
Illustrative scenario: A debtor wants to continue an unexpired car lease that the trustee does not assume. The form records the intention, while §365(p)(2) provides a separate written-notice process. The debtor may tell the lessor in writing that they want to assume the lease; the lessor may agree and condition assumption on curing a default. The official instructions explain that, if the lessor notifies the debtor it is willing to allow assumption, the debtor must write back within 30 days stating that the lease is assumed. Marking “yes” on Form 108 does not substitute for that process. A residential rental lease is not listed in this personal-property-lease part.
What Happens If the Debtor Misses a Step?
Section 362(h) provides for termination of the automatic stay as to covered personal property, and its removal from the bankruptcy estate, when the debtor fails to make the required timely statement or carry out the required treatment. This can remove bankruptcy protection for the affected collateral; it is not a rule that every missed Form 108 step automatically ends the whole case.
The statute contains qualifications, including a provision concerning an intention to reaffirm on original contract terms when the creditor refuses, and a timely trustee-motion exception for property of consequential value or benefit to the estate. The separate §521(a)(6) rule likewise has specified conditions and a trustee-motion exception. Where that rule applies and its conditions are unmet, it permits creditor action against the affected personal property under applicable nonbankruptcy law; it does not authorize every conceivable collection action.
The useful reading sequence is identify the property, identify the stated choice, check service and the correct deadline, then check whether the follow-up action actually occurred. The statement explains a plan; the governing law and completed steps determine its practical effect.