Schedule E is a list of all your priority debts. In the Official Forms, Schedule E and F are together. The reason for this is that both Schedule E and F are unsecured debts. Remember from last week’s post that secured debts are those where a creditor holds something as collateral. If the creditor has no collateral, the debt is unsecured.
The difference between Schedule E and Schedule F unsecured debts is that the Bankruptcy Code gives some unsecured debts priority in payment over others. This means that a priority debt will be paid before non-priority debts. There are several different types of priority debts, but the ones most likely to be listed in a consumer bankruptcy are
- Domestic support obligations (child support, alimony, maintenance and the like)
- Taxes or other claims owed to governmental units
- Damages for death or injury caused by the debtor while operating a motor vehicle under the influence of drugs or alcohol.
If the debt is not one of these types of debt, it is most likely not a priority debt. If in doubt, list the debt on Schedule F, general unsecured claims. The distinction between priority and non-priority debt is important only if there are funds available to the trustee for a liquidation.
To complete Schedule E, list the creditor’s name and address; indicate who is responsible for the debt using the same rules as with Schedule D, secured claims; list the last four digits of the account number assigned to the debt by the creditor; indicate what type of priority the claim has; and finally list the full amount of the claim, the amount entitled to priority (in the case of some claims, a portion of the claim is entitled to priority and a portion is not), and finally list the amount that is non-priority (the difference between the full amount and the amount entitled to priority).
As with most of the schedules, filling them out is relatively easy once you know what needs to go in each section. If you have any questions about completing your schedules or bankruptcy in general, contact us.