Schedule D: Creditors Who Have Claims Secured by Property (Official Form 106D)
The people or organizations to whom you owe money are called your creditors. A claim is a creditor’s right to payment. When you file for bankruptcy, the court needs to know who all your creditors are and what types of claims they have against you.
Typically in bankruptcy cases, there are more debts than assets to pay those debts. The court must know as much as possible about your creditors to make sure that their claims are properly treated according to the rules.
Creditors may have different types of claims:
Secured claims. Report these on Schedule D: Creditors Who Have Claims Secured by Property (Official Form 106D).
Unsecured claims. Report these on Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 106E/F).
If your debts are not paid, a creditor with a secured claim may be able to get paid from specific property in which that creditor has an interest, such as a mortgage or a lien. That property is sometimes called collateral for your debt and could include items such as your house, your car, or your furniture. Creditors with unsecured claims do not have rights against specific property.
Many creditors’ claims have a specific amount, which you do not dispute. However, some claims are uncertain when you file for bankruptcy, or they become due only after you file. You must list the claims of all your creditors in your schedules, even if the claims are contingent, unliquidated, or disputed.
Claims may be contingent, unliquidated, or disputed
Claims may be:
Contingent claims, Unliquidated claims, or
A claim is contingent if you are not obligated to pay it unless a particular event occurs after you file for bankruptcy. For example, if you cosigned someone else’s note, you may not have to pay unless that other person later fails to repay the loan.
A claim is unliquidated if the amount of the debt cannot be readily determined, such as by referring to an agreement or by a simple computation. An unliquidated claim is one for which there may be a definite liability but where the value has not been set. For instance, if you were involved in a car accident, the victim may have an unliquidated claim against you because the amount of damages has not been determined.
A claim is disputed if you disagree about whether you owe the debt. For instance, if a bill collector demands payment for a bill you believe you already fully paid, you may describe the claim as disputed.
A single claim can have one, more than one, or none of these characteristics.
On Schedule D: Creditors Who Have Claims Secured by Property (Official Form 106D), list all creditors who have a claim that is secured by your property.
Do not leave out any secured creditors
In alphabetical order (as much as possible), list anyone who has judgment liens, garnishments, statutory liens, mortgages, deeds of trust, and other security interests against your property. When listing creditors who have secured claims, be sure to include all of them. For example, include the following:
Your relatives or friends who have a lien or security interest in your property;
Car or truck lenders, stores, banks, credit unions, and others who made loans to enable you to finance the purchase of property and who have a lien against that property;
Anyone who has a mortgage or deed of trust on real estate that you own;
Contractors or mechanics who have liens on property you own because they did work on the property and were not paid;
Someone who won a lawsuit against you and has a judgment lien;
Another parent or a government agency that has a lien for unpaid child support;
Doctors or attorneys who have liens on the outcome of a lawsuit;
Federal, state, or local government agencies such as the IRS that have tax liens against property for unpaid taxes; and
Anyone who is trying to collect a secured debt from you, such as collection agencies and attorneys.
List the debt in Part 1 only once and list any others that should be notified about that debt in Part 2. For example, if a collection agency or an attorney is trying to collect from you for a debt you owe to someone else, list the person to whom you owe the debt in Part 1, and list the collection agency in Part 2. If you are not sure who the creditor is, list the person you are paying in Part 1 and list anyone else who has contacted you about this debt in Part 2.
If a creditor’s full claim is more than the value of your property securing that claim—for instance, a car loan in an amount greater than the value of the car—the creditor’s claim may be partly secured and partly unsecured. In that situation, list the claim only once on Schedule D: Creditors Who Have Claims Secured by Property (Official Form 106D). Do not repeat it on Schedule E/F: Creditors Who Have Unsecured Claims (Official Form 106E/F). List a creditor in Schedule D even if it appears that there is no value to support that creditor’s secured claim.
Determine the unsecured portion of secured claims
To determine the amount of a secured claim, compare the amount of the claim to the value of your portion of the property that supports the claim. If that value is greater than the amount of the claim, then the entire amount of the claim is secured. But if that value is less than the amount of the claim, the difference is an unsecured portion. For example, if the outstanding balance of a car loan is $10,000 and the car is worth $8,000, the car loan has a $2,000 unsecured portion.
If there is more than one secured claim against the same property, the claim that is entitled to be paid first must be subtracted from the property value to determine how much value remains for the next claim.
For example, if a home worth $300,000 has a first mortgage of $200,000 and a second mortgage of $150,000, the first mortgage would be fully secured, and there would be $100,000 of property value for the second mortgage, which would have an unsecured portion of $50,000.
$300,000 value of a home
- $200,000 first mortgage
$100,000 remaining property value
$150,000 second mortgage
- $100,000 remaining property value
$ 50,000 unsecured portion of second mortgage
The schedules to be used in cases of individual debtors are revised as part of the Forms Modernization Project, making them easier to read and, as a result, likely to generate more complete and accurate responses. The goals of the Forms Modernization Project include improving the interface between technology and the forms so as to increase efficiency and reduce the need to produce the same information in multiple formats. Therefore, many of the open-ended questions and multiple-part instructions have been replaced with more specific questions. The individual debtor schedules are also renumbered, starting with the number 106 and followed by the letter or name of the schedule to distinguish them from the versions to be used in non-individual cases.
Official Form 106D, Schedule D: Creditors Who Have Claims Secured by Property, replaces Official Form 6D, Creditors Holding Secured Claims, in cases of individual debtors.
Part 1, List All Secured Claims, now directs the debtor to list only the last four digits of the account number. Part 1 also adds four checkboxes with which to describe the nature of the lien: an agreement the debtor made (such as mortgage or secured car loan); statutory lien (such as tax lien, mechanic’s lien); judgment lien from a lawsuit; and other.)
The form adds Part 2, List Others to Be Notified for a Debt That You Already Listed. The debtor is instructed to use Part 2 if there is a need to notify someone about the bankruptcy filing other than the creditor for a debt listed in Part 1. For example, if a collection agency is trying to collect for a creditor listed in Part 1, the collection agency would be listed in Part 2.