All About Bankruptcy Schedule D

  • bankruptcy

All About Bankruptcy Schedule D

Call: 888-297-6203

Bankruptcy just like any other legal or judicial procedure demands a lot of documents and forms. One such schedule is schedule D which is also known as Form 106D. This form is basically used by bankruptcy filers to indicate lenders who can claim an asset that is under the filer’s possession. The lenders in question here are the ones who have lent money for a collateral, which can be repossessed by the lender and should be listed on form 106D. Know more about other schedules and statements of bankruptcy at

Secured and unsecured debt distinction

The key distinction is the lien or a right to re-track the asset as specified in the lending agreement in case of a secured debt. Unsecured debt on the other hand is something that has no backing, and the lender is sort of helpless in case the debtor falls behind his payments. These may include debts like medical bills, credit card bills, payday loans, hand loans, etc. These kinds of debts get discharged first in case of a bankruptcy discharge.

Another important debt that is unsecured but turns as a secured debt is situational debt. For example, if a contractor has assisted you in remodeling your home and has provided for all materials, and furnishing items, he holds some right or lien on the property until he is repaid. This kind of debt is known as situational debt and it can be unsecured in nature but can become a secured debt based on the situation. These debts also need to be reported on the Schedule D of bankruptcy forms.

What are the contents of Schedule D?

A schedule can be broadly classified into two parts. The first part has many questions that need to be answered appropriately and honestly by the bankruptcy filer. The questions can be listed as follows-

  • Lender details

Here the secured lender’s details like contact information, name, and type of the lender are provided. If it’s an institution, the payment address or customer service/inquiry address can be provided. Situational debt lenders also should be listed here.

  • Asset in question description

All the assets that are a collateral or that can be accessed by the lenders through a lien or otherwise should be listed here. The asset details should include proper description, approximate value, status, and any other information that can help in proper perseverance of the asset value.

  • Debtor/cosigner details

If the debt had a cosigner or a guarantor or any other person who is also liable for the debt, the details regarding them should be listed in this section. All the secured debt debtors must be listed here with their official names and contact details.

  • Nature of the debt

If the secured debt is a contingent debt, that is based on a particular event or situation or if it is a situational debt, or if it is an unliquidated debt wherein the debt cannot be predicted or estimated, such details should be mentioned in this section.

  • Lien type and amount

The type of lien rights the lender hold against the asset in question must be mentioned here. Along with that, in the amount section for each secured debt, the existing balance, the approximate value of the asset in question, and the net unsecured value of the debt in the secured debt should also be listed. Calculating the unsecured value of debt in the secured debt isn’t easy as it might look. An attorney can help you in arriving at the right number using the right approach. To connect with one just dial 888-297-6203 and you will have top attorneys from Los Angeles & Dallas, TX at your service.

Part 2

Any other information that could not be listed in the above section can be mentioned here. Any other party details that have some or the other influence or impact on the asset in question or any other information that might be useful or critical during the review of secured debts can be listed in this section.