Bankruptcy Schedule E/F Explained: Listing Unsecured Debt

Understanding Schedule E/F – Unsecured Debt in a Bankruptcy Petition

When filing for bankruptcy, accurately listing all of your debts is crucial. Schedule E/F of the bankruptcy petition is where you list unsecured debts, those not tied to a specific asset like a home or car.

Secured vs. Unsecured Debt on the Bankruptcy Schedules

A key distinction to remember is the difference between secured and unsecured debt. For example, if you still possess a car or home you intend to surrender, the debt is secured. It belongs in Schedule D, not Schedule E/F. You would state your intent to surrender the asset, which prevents the debt from being included as an exemption on Schedule C (Exemptions).

• Schedule D: Creditors Who Hold Claims Secured By Property (individuals)

Once an asset is surrendered or repossessed (e.g., a car repo or a home foreclosure), any remaining balance is considered unsecured. This balance is known as a deficiency balance, and it should be listed in Schedules E/ F.

Common Mistakes to Avoid with the Bankruptcy Petition

Duplicating Debt: If a debt has been sold to a collection agency, you don’t list the balance twice. List the original creditor along with the balance, and then the collection agency with a “notice only” designation and a balance of $0. This prevents artificially inflating your total debt, which could raise red flags for the trustee.

Including Non-Dischargeable Debt: Certain debts, such as domestic support obligations (alimony, child support), most taxes, and debts from a DUI, are generally not discharged in bankruptcy. While you must list them, they will not be eliminated through the process.

Student Loans: Student loans are a special case. To discharge them, you must file a separate lawsuit called an “adversary proceeding.” The debt still gets listed, and it has been my experience that creditors that weren’t willing to negotiate flexible payment plans may do so once the bankruptcy is filed.

Also, sometimes it’s advantageous to restart payments on student loans if it reduces disposable income when comparing Schedules I to J.

Completing the List of Creditors

Be sure to list the correct name of the creditor, and note that you only need to provide the last four digits of the account number. Creditors use your Social Security number to match the debt.

Given recent data breaches, it’s a good practice to freeze your credit with all three major credit bureaus (TransUnion, Equifax, and Experian). This prevents unauthorized access to your credit report. You can unfreeze it temporarily when you need to apply for new credit. There’s even a recent whistleblower complaint filed against DOGE (Department of Government Efficiency) that claims Social Security data has been breached.

• Equifax, Experian, Transunion (Freeze Your Credit Via This Link)

If a debt has a co-signer or co-debtor, you must list them. Filing for bankruptcy only discharges the debt on your end; the co-debtor remains responsible for the balance.

Foreclosures, Car Repossessions, and Deficiency Balances/Judgments

If there is a debt, such as a foreclosure, it’s important to clarify that. When listing a deficiency balance or judgment, be clear that it is tied to a specific property (e.g., “deficiency balance on home at [address]”). This helps prevent the U.S. Trustee from questioning the large unsecured debt total.

Also, note that if there was a lawsuit regarding a foreclosure or car repossession, information regarding that lawsuit is also listed on the Statement of Financial Affairs (SOFA).

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.