Last week we started to address the various schedules that constitute a bankruptcy petition. We addressed Schedule A (covering real property), Schedule B (covering personal property), and Schedule C (detailing the exemptions used to shield assets listed on both Schedules A & B). Now, we turn to schedules that address and detail your debt.
Schedule D lists all of your secured debts. Secured debts are those that are linked to some form of property, most commonly a house or car. These debts are considered "secured" because the money lent that constitutes the debt was given based upon certain collateral, usually the house/land or car in question. There are other forms of property that can be secured as well, such as furniture or jewelry. Those security interests are usually classified as Purchase Money Security Interests (PMSI). They are secured in this way because the furniture or jewelry is often purchased as part of a financing agreement that lends the money to purchase the furniture or jewelry by giving that particular property as collateral. It may seem confusing, but your bankruptcy attorney will best know how to handle this situation, as it is important to correctly list the secured property on this schedule.
On this schedule, you will list all of your priority claims. These are debts that are technically not secured, but they are classified differently than general unsecured debts under the Bankruptcy Code. These debts are usually non-dischargeable in bankruptcy, and include debts such as tax debts and domestic support obligations.
Schedule F will list your unsecured debt, so this is the schedule where most of your debt will likely land. Here you list all of your credit card bills, medical bills, personal loans, any deficiency balances from repossessed cars or foreclosed homes, as well as any payday loans or personal loans. It is important to list and provide notice to anyone involved with an unsecured debt, whether it is the original creditor, collection agency, or attorney who represents a creditor who is bringing a lawsuit against you. When in doubt, list anyone or any entity you feel may be involved in attempting to collect on a debt to ensure they receive notice.