An offset, like the term “setoff”, is the deduction by the Debtor from a claim or demand of a debt or obligation owed to the Creditor.
It can also be a counterclaim or a contrary claim or demand by which the Creditor’s claim may be lessened or canceled.
So on form B106 Schedules E/F that lists all of the Creditors, if a creditor’s claim is subject to an offset because of a deduction that the debtor may have against that claim, the yes box would be marked indicating that the claim is subject to offset.
For personal Bankruptcy software that make it easy to complete and file the forms, see Standard Legal’s Chapter 7 and 13 Bankruptcy package here.