In the bankruptcy process, debtors filing for bankruptcy will need to complete several forms documenting their assets and debts to the court. One of those forms is Schedule E. On this particular form, the debtor lists unsecured creditors that have a priority over other creditors. In doing so, these creditors will receive some of the proceeds from the sale of assets, if there are any.
Numerous types of unsecured priority claims the debtor may owe. In general, this includes taxes, debts owed to governments, domestic support obligations, child support obligations, wages and salaries in the case of small business owners declaring bankruptcy and other types of debts. If you have any of these types of debts, you will need to complete Schedule E.
Filling Out Schedule E
On Schedule E, fill out the following information:
- Check the box of the type of priority claim you have. Most bankruptcy forms will provide specific examples and definitions for each type of debt listed.
- On the third page, after the list of credit types you may have, is a document to fill out. In the first column, list the creditor's name and address, as well as your account number.
- In the next two columns, list if there is a co-debtor and their relationship to you.
- In the fourth column, list the date the debt happened, or the date, you obtained the debt.
- Select if the debt is contingent, un-liquidated or disputed. Contingent means that you owe the debt only if something else happens first, such as a third party owes the funds and you are a co-signer of the debt. Un-liquidated means you expect to have to pay the debt, but you do not know the amount of the debt. Check disputed if the creditor, or you, disputes the claim in some way.
- List the amount of the claim.
- List the amount entitled to the priority, or how much to pay to the creditor.
- List any amount that is not entitled to priority. If you owe the creditor an amount but only a certain portion of that is a priority claim, list the difference here.
At the bottom of Schedule E, total the debts as the form suggests.
Getting Legal Aid
Filling out Schedule E can be a bit confusing, especially determining if you have any priority debt claims. This is why it can be helpful to hire an attorney. An attorney can help you to fill out this form properly to ensure your bankruptcy case is processed.