Official Bankruptcy Form 106: Summary of Assets

Professor’s Corner

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Welcome to my series where I review all the bankruptcy forms for Chapter 7 bankruptcy. Today, we’re tackling Official Form 106: the “Summary of Your Assets and Liabilities and Certain Statistical Information.” You can also watch the detailed video on my YouTube channel.

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While it might seem a bit out of order, as it’s typically completed after other sections, I’m following the court’s form sequence to avoid confusion. Think of this form as your financial “full circle,” a way to review and catch errors once you’ve completed the bankruptcy petition.

Why Form 106 is More Than Just a Summary

Even with bankruptcy software, which mirrors the official forms and automates calculations, I always complete a manual review of Official Form 106, Summary of Your Assets. It helps identify potential red flags that could lead to complications with the bankruptcy trustee. Here are some key areas you should focus on:

Asset Listing: Double-check that all personal and real property assets are accurately listed.

Total Debt Accuracy: This is where many issues arise. For example, there could be duplicate creditors. Listing the same debt multiple times due to various collection agencies artificially inflates your debt and can raise fraud concerns with the U.S. Trustee’s Office.

The best practice is to list the original creditor with the full amount, and for collection agencies, note them as “notice only” with a $0 balance if they haven’t initiated a lawsuit. This proactive approach saves you time and hassle later.

Income vs. Expenses (The Disposable Income Test)

After completing Schedule I (Current Monthly Income) and Schedule J (Current Monthly Expenses), these numbers are reflected on Form 106. A significant difference, such as $1,000 of disposable income per month, is a major red flag. This means not qualifying for Chapter 7 and moving forward with a Chapter 13 repayment plan and paying a minimum of $1,000 monthly for 36 to 60 months. However, with this form, you should be able to catch discrepancies early.

Chapter 7 versus Chapter 13 Bankruptcy

While usually straightforward, business owners (especially those with LLCs) often misunderstand their personal liability. A business bankruptcy typically won’t protect them from personal lawsuits for business debts. Often, a personal bankruptcy is the more appropriate and cost-effective solution, especially if the business has ceased operations.

• Why LLCs Don’t Fully Protect You from Bankruptcy

You can’t sue a non-existent business, so filing for personal bankruptcy is usually the best option.

Domestic Support Obligations (DSOs)

With DSOs (like child support and alimony), confirm these obligations are not duplicated between income deductions or wage garnishment orders and expense listings. If not, this reduces disposable income, but when calculated correctly, it would leave a substantial amount of disposable income, resulting in a Chapter 13 bankruptcy.

Remember, DSOs are not dischargeable in bankruptcy. Cases involving divorce could serve as a red flag because there could be proceeds from the sale of a home. If those funds are rolled into a new property, it’s protected, but if not, those funds are typically not protected in bankruptcy.

• Understanding Nondischargeable Debts in Bankruptcy

Likewise, moving protected funds like 401K money into unprotected accounts like checking accounts removes their exempt status.

With taxes, the government usually gets its money, but there are exceptions. Generally, taxes might be dischargeable if they haven’t been paid for five years.

Student loans are rarely discharged in bankruptcy without an “adversary proceeding,” which is a separate lawsuit. However, bankruptcy can sometimes lead to student loan lenders becoming more flexible with payment arrangements. Sometimes, you might have to restart a payment plan to reduce disposable income calculations for Chapter 7 qualification.

Review Your Bankruptcy Petition Several Times

Errors in bankruptcy petitions, even if minor, require amendments and additional time spent, so consider reviewing your petition in multiple formats. For example, even though I use bankruptcy software, I review it in a PDF format and then again with a physical printout. Each method helps spot errors you might otherwise miss.

Use Form 106 as a tool for ensuring accuracy and preventing complications in your bankruptcy case. Errors cost time and money, especially when forms need to be amended. But using the Summary should help you address these issues.

Click this link for the Official Form 106: the “Summary of Your Assets and Liabilities and Certain Statistical Information.“

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can find additional categories by clicking below or by using the search feature at the top of this page:

• Bankruptcy
• Your Wallet

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated initially on August 30, 2025.