Creditors and Obligations

Produced by Attorney Mariah Jennings-Rampsi for MassLegalHelp
Created September 2016

Tell the court about the debts you owe

You will need:

  • the name of every creditor, debt collector, and court you owe money to
  • their address,
  • the amount you owe, and
  • your account number, if you have it.

If you have not yet gathered all this information do so now. For a list of the documents you need, see Gather your documents.

Put your documents into 3 piles for the 3 kinds of debts

  • Secured debt,
  • Priority debt, and
  • Unsecured debt.

Typical debts

You may not have all of these, but this table shows the form to use for each kind of debt

Secured Debts
Schedule D

Priority Debts
Sched E/F (part 1)

Unsecured Debts
Sched E/F (part 2)

car loan

Alimony

bank charges or fees

mortgage

child support

credit card debt

 

tax debt

Dr. bills

 

DUI- judgments for injury or death

electric bill

 

 

gambling debt

   

gas bill

   

Heat

 

 

Mortgage after foreclosure

   

medical bills

   

overdue rent

   

store account

 

 

2nd mortgage - if your property is worth less than the 1st mortgage on it

   

student loans

 

 

Utility bills

Secured debt goes on Schedule D and Debtor’s Statement of Intention

“Secured” debts are tied to property. Any debt that some of your property can be sold to pay is a secured debt. The most common secured debts are mortgages, home equity loans, auto loans, judgment liens and title loans.

You may get a judgment lien if a creditor takes you to court and wins. The creditor will get a court judgment that says the creditor has the right to the cash value of some of your property. If you or anyone else sells that property the creditor has the right to the cash from the sale. If you are renting to own your home, talk to a lawyer about putting this information on Schedule D.

  • Has your home been foreclosed? If your home was foreclosed and sold, do not list any mortgages or home equity loans. Those loans are no longer secured by the house. List them on Schedule E/F part 2 – Unsecured Nonpriority Claims.
  • If you do not have any of these kinds of loans, you probably do not have any secured debts. You can skip this section.

Unsecured debt

The second and third kinds of debt are  “unsecured claims.” These debts are not secured by any property. Most of your debts will probably be unsecured. There are two different kinds of unsecured debts.

PRIORITY- Unsecured Debt goes on Schedule E/F Part 1.

Part 1-Unsecured Priority must be paid before other unsecured debts. Only a few debts are priority. They include:

  • past due child support or alimony,
  • taxes or fines owed to the government,
  • money you owe for personal injury or death you caused if you were driving under the influence of alcohol or drugs.
  • Government student loans (not private) fees and charges.

NONPRIORITY- Unsecured Debt goes on Schedule E/F Part 2.

Unsecured nonpriority debts are debts the trustee pays last. These debts are not linked to your property. Most of y­­our debts will be unsecured nonpriority claims.

Now, type up your Creditor Matrix.

Filing without a lawyer

  • Bankruptcy is complicated. Filing without a lawyer is risky.
  • You can lose property and money. You can go to jail if you do not tell the truth.

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