What is a Schedule D for a bankruptcy filing?

A debtor initiates a bankruptcy by filing the bankruptcy petition and schedules and paying the required filing fee.  Bankruptcy schedules A-J are used by the debtor to identify his real and personal property, his secured, unsecured, and priority unsecured debts, and his monthly income and expenses. 

The Schedule D forms are used by a debtor to list his secured debts.  All secured debts, even those that are under-secured or subject to lien avoidance should be listed on Schedule D.  If a debtor owes more on a particular secured debt than the property securing it is worth, the portion of the debt that is unsecured should be set forth in the space provided in Schedule D. 

Creditors holding security deposits should also be listed as secured creditors on Schedule D.  Moreover, any bank, credit union or financial institution which may have a right to setoff against the debtor’s accounts should be listed on Schedule D. 

Because the purpose of the bankruptcy schedules is to clearly identify the debtor’s financial liabilities, it’s best that a debtor who is unsure of whether a particular debt is secured or who disputes a debt list it on Schedule D with a notation that the debt is disputed.  In Chapter 13 cases, it’s also advisable to set forth on Schedule D the amount of any arrearage on mortgages, auto loans, and other long term debts. 

Most debtors who represent themselves fail to properly complete the bankruptcy petition and schedules.  Errors on these forms can have a dire impact on a debtor’s case, his right to receive a discharge, and the scope of the discharge he may receive.  Therefore, it’s always best to be represented by an experienced bankruptcy attorney.