Schedule D is where debtors in all chapter of the bankruptcy code — 7, 11, and 13 — list their secured debts. The form itself isn’t very complicated. There are spaces for listing the name and address of the creditor, the last four digits of the account number, and a basic description of the debt and the property that is the security for the debt (example: small business loan, secured by Caterpillar bulldozer, etc.).
On the right hand side of the form, the total amount of the debt is listed. Next to that is a space for listing if the debt is partially unsecured (example: a business loan for $200,000 on a bulldozer currently worth $150,000 is unsecured for $50,000).
While the form is simple, there are some hidden issues with secured debts. Traps if you will, for those who would try to proceed without advice. For car buyers filing Chapter 13 cases, secured auto loans can’t be modified if the car was bought within 910 days (not quite 3 years) of the filing date for the case.
Also, home owners will have their homestead exemption capped at about $146,000 no matter where they lived, if they bought their house within 1215 days (about 40 months) of filing. And if you moved across state lines within two years of filing, you can’t use the homestead exemption your new state, you have to use the exemption of your old state.
By Doug Beaton