What is the purpose of reporting?
The report presents actual income and expenses and permits review of the individual's current position. It is not merely an estimated budget, so the figures should correspond with pay slips, bank statements, receipts, and the attached records.
What income is reported?
Employment income, benefits, recurring support, business income, and every additional source required by the proceeding should be included. When income changes from month to month, the variation should be explained and documented.
What expenses are reported?
Housing, food, transportation, education, health care, and other recurring expenses should be itemized and supported. An unusual expense requires explanation, and a transfer between accounts is not necessarily a genuine expense.
Consistency with bank records
A discrepancy between the report and account activity may raise questions. Cash deposits, family transfers, payments through other cards, and expenses absent from ordinary records should be reviewed in advance.
Changes in financial circumstances
Job loss, increased wages, medical expense, or a family change may be material. The change should be reported as required rather than left for later discovery.
Concluding point
The report should tell the same story as the supporting documents. Accurate disclosure strengthens transparency and permits consideration of an appropriate rehabilitation plan.
Principal legal sources
- Insolvency and Economic Rehabilitation Law, 5778-2018.
- Insolvency and Economic Rehabilitation Regulations, 5779-2019.
- Insolvency Commissioner service for individual financial reports.