When we work together, I want you to be 100% confident that you’re well informed throughout the bankruptcy process, so if you ever have questions along the way, I’m glad to answer them. We’ll make some important decisions together, and I’ll help you avoid the mistakes that some filers make. One of my primary roles is to ensure that all of the paperwork and documentation that we submit to the court is correct and complete.
Secured Creditors
As we prepare your package of paperwork, we’ll include Schedule D, which lists important information about your secured creditors and debts. These secured debts are backed up by collateral; the collateral for loans is typically the property you used the loan to purchase. If you have a mortgage or auto loan, you most likely have agreed that the property may be seized if you’re unable to keep up with the loan payments. Tax and judgment liens are also considered secured debts since property may be taken if the debts are not paid.
Most types of credit cards are unsecured debts, which are discharged in a Chapter 7 and may end up not being paid at all in a Chapter 13. However, if you bank with a credit union, your credit card or personal loan may actually be secured by your other accounts or property. With some loan terms, when a creditor takes your secured property, you may be responsible for any remaining balance after the property value is deducted. This remaining debt would be converted to unsecured debt, which is not listed on Schedule D. We can work through all of your debts together to ensure that they’re included on the correct form.
Completing the Form
As we create your paperwork package, I’ll give you only the forms you need, and many of them will be pre-filled for you. Before submitting anything, I will, of course, review all of the documents to make sure they are correct and complete. On Schedule D, we’ll list any creditors who hold claims secured by your property, such as your mortgage company, bank, or collection agency collecting a secured debt. You’ll also need to list anyone who is part of a judgment lien against your property, such as a lawyer, doctor, contractor, or the IRS.
You’ll need to list each secured creditor’s name and address, as well as to whom the debt belongs and the date the debt was incurred or refinanced. The court will also need some information about the property that the debt is tied to. You’ll have space to describe the property, and you’ll also need to provide the last four digits of the account number and how much you currently owe. I’ll help you estimate the value of the property so that we can compare it to the amount owed. If you owe more than the property is worth, we’ll include this information as well. You’ll also need to tell the court if this debt is due to a lien and if the claim is disputed, contingent, or unliquidated.
Let Me Help
As you prepare to file bankruptcy, the last thing you should be worrying about is selecting the correct forms to complete. Let me take that burden for you and prepare a solid case that will discharge as much of your debt as possible while protecting your property.