With the enactment of the Bankruptcy Abuse Prevention and Consumer Prevention Act (BAPCPA) that went into effect in October of 2005, the bankruptcy schedules to be used in cases of individual debtors, as well as other essential forms, were revised as part of the Forms Modernization Project, to make them easier to read and, as a result, likely to generate more complete and accurate responses.
Bankruptcy debtors are required to organize the information that they present to the court and trustee. Much of this information is organized and filed using the official forms for the bankruptcy schedules. Here is a quick summary.
- Official Form 106/Schedules A/B
This form consolidates information about an individual debtor’s real and personal property into a single form. In addition to specific questions about a debtor’s real property assets, the form also includes space for providing additional information regarding particular assets when appropriate. Property must be identified and appraised at garage-sale prices. Although a particular item of property may fit into more than one category, it should be listed only once. Homes, lots, vehicles, financial assets, household goods are examples of the property that must be listed on this form and schedules (A/B).
- Official Form 106C/Schedule C
One of the most important tasks that any person must complete when filing bankruptcy is taking advantage of every possible exemption under applicable state and federal law. Bankruptcy exemptions allow bankruptcy debtors to exclude or exempt property from their bankruptcy estate. It is the property in a debtor’s bankruptcy estate that is liquidated or sold to pay creditors of the debtor. Exemptions are available in both the Bankruptcy Code and in state law.
Exempt property may not be sold by the bankruptcy trustee for the benefit of your unsecured creditors. To protect this property, debtors must claim an appropriate bankruptcy exemption when filing their bankruptcy petition. They do so using this form.
- Official Form 106D/Schedule D
Unlike unsecured debts like medical bills or credit cards, the creditors of secured debts have the right to seize and sell collateral like cars and houses to repay the debt. The creditor has a lien on the property or collateral with a right to seize the property if there is a failure to pay the loan or the debtor otherwise defaults on the obligation. Debts that are secured by property or collateral are listed on this form. The debtor must describe the nature of the lien: an agreement the debtor made (such as a mortgage or secured car loan); statutory lien (such as tax lien, mechanic’s lien); judgment lien from a lawsuit; and any other that is applicable.
- Official Form 106/Schedules E/F
This form consolidates information about priority and nonpriority unsecured claims into a single form.
Unsecured debts fall into two categories: priority unsecured debt and general unsecured debt.
- Priority unsecured debt receives special treatment in bankruptcy as they are not dischargeable in bankruptcy. Priority debts include alimony, child support, and certain taxes. The bankruptcy trustee pays priority debts before general unsecured debt.
- General unsecured debt is paid last as unsecured creditors are at the back of the line. The trustee pays nonpriority unsecured debts, such as credit card bills, medical debt, and personal loans, after priority debts. Most of these debts are dischargeable in bankruptcy. For example, student loans are general unsecured debt but typically not dischargeable in bankruptcy.
- Official Form 106/Schedule G
The debtor lists any unexpired leases or executory contracts to which the debtor is a party on this form. The form is simplified from its predecessor. Instead of requiring the debtor to make multiple assertions about each potential executory contract or unexpired lease, the form simply requires the debtor to identify the name and address of the other party to the contract or lease and to state the subject matter of the contract or lease.
- Official Form 106/Schedule H
This form includes questions about whether the debtor has any codebtors, and whether the debtor has lived with a spouse, former spouse, or legal equivalent in a community property state in the prior eight years.
- Official Form 106/Schedule I
Income from all sources is listed on this form. Whether wages, business income, or a government benefit, all income sources are listed on this form (Schedule I).
- Official Form 106/Schedule J
Schedule J (Your Expenses) goes hand in hand with Schedule I. Here, debtors list how much they spend every month on rent, food, transportation, etc.
Debt collectors want to be repaid and are rarely sympathetic. They will not stop calling unless you know your legal rights. An experienced bankruptcy attorney like Theron Morrison will make them stop calling you and assert your legal rights on your behalf. Call 801.456.9933 today to schedule a FREE consultation. We are Utah’s only statewide bankruptcy law firm and have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.