Questions about Contribution Declaration

Based upon the information you provided I am guessing your friend filed a Chapter 13. Chapter 13s require that the debtor show they can cover their monthly expenses AND pay a portion of their debt back to the court (depending upon the particular circumstances). If a debtor cannot show they are able to cover their expenses, the court will not approve the filing. In these situations if someone is making a regular contribution to the household that makes the Chapter 13 economically feasible they generally want written proof that this is happening. If you are in fact making contributions then signing the paper merely states that to the court. You will not be obligated to continue making the payments (this of course depends upon the wording of the document), but if you stop your friend's bankruptcy case may be dismissed because it is unaffordable.

In Bankruptcy Court, some courts want a declaration that as of the date of filing, someone else gives money to the debtor and intends to continue. I would not sign something that commits you to paying until the end of the case. There would not be a penalty or jail (unless you lied and never intended to pay it), but you might set yourself up to be sued by your friend.

You don't want to sign a document like this unless it is true, because it will be in the form of an Affidavit, which is a statement made under penalty of perjury. However, as long as it is true at the present time, you are not legally committed to continuing to make the payments unless the documents specifically states that you are committing to making payments for a certain period of time. Hope this perspective helps!