Schedule D is yet another document that you must fill out when you file a bankruptcy case. It is formally called "Schedule D - Creditors Holding Secured Claims." This refers to debts that you owe to creditors that have a lien on your property (collateral). Similar to the other bankruptcy schedules, it is essential to a successful bankruptcy to correctly and completely fill out the Schedule D.
Before you begin filling out Schedule D, you must assess what is a secured claim. Secured claims for most individuals include car loans and mortgages. However, if you have any other debt where the creditor has a lien on any of your property, that debt is a secured debt. For example, credit card debt is unsecured but if you obtain a loan to finance the purchase of a house, that debt is secured by your property (the house). Creditors should be listed in alphabetical order.
First Column - Identify Creditor
The first column requires that you disclose the name, mailing address, and account number for each of your secured creditors. Although it may be sufficient to use the address on bills you receive from your creditors, it is a better idea to find out each secured creditor's legal or bankruptcy department address. These addresses can be discovered on the creditor's website or by calling customer service.
Second Column - Codebtor
You must place an "X" in the second column if there is a codebtor on any of the secured debts, besides your spouse. For example, if you jointly obtained a home loan with a friend, your friend would be a codebtor on the secured debt.
Third Column - Husband, Wife, Joint or Community
The third column is very similar to the second column, except it asks you to specify whether your spouse is jointly liable on the debt. If so, indicate "W" or "H." Indicate "C" if both husband and wife are liable (community property is liable) and "J" if another non-spouse is jointly liable with you.
Fourth Column - Description of Claim
In this column, you must disclose the date that you first incurred the secured claim. You must also describe and value the property which secures the lien. For example, you would indicate the physical address of a house that secures a home loan. Finally, you must indicate the nature of the lien, such as "car loan" or "home mortgage."
Fifth, Sixth and Seventh Columns
Place an X in one or all of these columns to state that the secured claim is contingent, unliquidated or disputed, respectively. A claim is contingent if there is some event that has not come to pass which will finalize the claim. A claim is unliquidated if it cannot be mathematically calculated. Make sure to also indicate if the claim is disputed by you by putting an "X" in the seventh column.
Eighth Column - Value of Claim
In this column, indicate the amount of the claim. This is the amount that you owe to the creditor. Indicate the full value of the claim, do not deduct the value of the collateral.
Ninth Column - Unsecured Portion
This last column gives the bankruptcy court information regarding how much of each secured claim is unsecured. A secured claim can become totally or partially unsecured if the value of the collateral drops in comparison to the amount outstanding owed to the creditor. This most often happens when a house loses value and a debtor owes more on the loan for the house than the house is worth (colloquially known as "underwater"). To determine the unsecured portion of a claim, subtract the amount of the secured claim by the value of the collateral, any amount greater than zero is the unsecured portion.