If you file for Chapter 7 or Chapter 13 bankruptcy, you must complete forms that disclose your income, expenses, debt, and the types of real property (real estate) and personal property you own. One of the forms is called the Statement of Financial Affairs for Individuals Filing for Bankruptcy.

On this form (which you may find and complete on the uscourts.gov website) you will list financial transactions you made up to ten years before you filed for bankruptcy. The bankruptcy trustee will review these transactions and may undo a sale, gift, or transfer of property the trustee determines should be used to pay your creditors. Sales, gifts, debt payments, and transfers of property to your friends and family members are known as insider payments, and will receive the most scrutiny.

In Alaska, as in all states, when filing for Chapter 7 or Chapter 13 bankruptcy, debtors are required to complete and submit various forms that provide a detailed account of their financial situation. One of these forms is the Statement of Financial Affairs for Individuals Filing for Bankruptcy, which is available on the uscourts.gov website. This form requires the disclosure of significant financial transactions that occurred up to ten years prior to filing for bankruptcy. The bankruptcy trustee assigned to the case will examine these transactions to identify any that may be considered preferential or fraudulent transfers. If the trustee finds that certain assets were transferred in a way that unfairly prefers one creditor over others or that attempts to hide assets from the bankruptcy estate, they have the authority to reverse these transactions. This process ensures that all assets are fairly distributed among creditors according to bankruptcy laws. Insider payments, which are transactions with friends, family members, or other close associates, are particularly scrutinized for fairness and legality. It's important to accurately and completely fill out the Statement of Financial Affairs to avoid any allegations of bankruptcy fraud or other legal complications.