Page 39 - Bankruptcy Volume 1

Chapter 6

Creditor Matrix, Statement of Financial Affairs and Schedules

Creditor Matrix

Upon filing a voluntary bankruptcy petition, Federal Bankruptcy Rule 1007(a)(1) requires the filing of a
list containing the name and address of each creditor unless the petition is filed along with schedules
(sometimes referred to as a creditor matrix). In certain jurisdictions, one can file a motion to discuss mo-
tions in lieu of a consolidated list of creditors instead of a creditor matrix. The list of creditors is almost
always filed on the date that the petition is filed. All actual creditors are to be included on the master list,
regardless of the size of the obligation or concerns over damaging relationships with customers. As the
creditor list will form the basis of many of the bankruptcy notices to follow, consideration should be
given to potential creditors and whether they should be noticed as well. Creditors also have the right to
request that they be added to the notice list.

The list of creditors must include the name of each creditor and its address. Typically, one list is filed,
regardless of the number of debtors included in the petitions. The list should contain all parties that may
be affected by the bankruptcy proceedings. It is important to list all creditors, as this list will be the basis
for serving notice of the bankruptcy filing on affected parties. There may be significant legal and practi-
cal ramifications of a failure to provide affected parties with proper notice. A typical list of creditors in-
cludes, but may not be limited to: current and past vendors, government authorities, current and past
employees, landlords, litigation parties and their counsel if applicable, debt holders (note there are often
special considerations when noticing debt obligations), equity holders, and any other party that may
have a claim against the estate. Care should be taken to understand how the lists will be used, where
they will appear, and what steps may be necessary or advisable to protect the privacy of individuals and
their personal address information.

Statement of Financial Affairs and Schedules of Assets and Liabilities

In addition to the creditor matrix, the Statement of Financial Affairs (SOFA) (Form 207) and the Sched-
ule of Assets and Liabilities (the schedules) (Form 206) are court-mandated filings that occur relatively
early in the case. The SOFAs and schedules are designed to give parties in interest a snapshot of the fi-
nancial condition of the debtors as of the petition date. SOFAs and schedules are required to be prepared
for each debtor. It is important to note that these documents do not purport to represent financial state-
ments prepared in accordance with generally accepted accounting principles (GAAP). A separate SOFA
and schedule must be filed for each debtor — even in cases consolidated for administrative purposes —
and each must be signed, under penalty of perjury, by a company representative (for example, CFO,
controller, general counsel). The SOFAs and schedules are due 15 days after the petition date, unless the
deadline is extended by rule or order of the court. Typically, in larger cases, the debtor requests and is
granted an extension of the filing deadline. The required forms for submitting the statement and sched-
ules are uniform across courts and are available through any bankruptcy court or office of the U.S. Trus-
tee. The requirements for filing the documents are provided in Section 521 of the Bankruptcy Code and
Bankruptcy Rule 1007.

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