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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2884
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I have beating my head against a rock on this one! Help, please,

Customer Question

I have beating my head against a rock on this one! Help, please, if you can.
I have a fact pattern where my attorney has stated that the following creditors need to be listed on Schedules, D, E, and F. He also stated that some of them may not be listed on any of the schedules if we don't have in our possession needed info. He said we can't just guess at what belongs where and that we need to know with out a doubt the classification of creditors. I'm new to this so I'm at a loss about this.

I know that the mortgage is a secured claim and belongs on Schedule D. I know that the taxes are the unsecured priority and belong on Schedule E,and I know that SBC, AT&T and CommEdison should be placed on Schedule F. Beyond that I don't know where to place the remaining creditors. I thing I'm supposed to leave them off of the Schedules until I ask the client a few more questions.

I don't know if any of the creditors have executory contracts in place, liens or judgments against the client so I'm at a loss as to where to place the creditor without this information.

I have created a questionnaire to try to find out more about the disposition of each creditor. For now, I hesitate to put the remaining creditors on any of the schedules until questions about liens, judgments etc are answered. Am I right in doing so?

Here are the creditors which will be listed on the list of 20 largest creditors form:

City of Littletown XXXXX
Littletown, IL 66666
PIN #43665

Commonwealth Edison
123 California
Chicago, IL 60321
Acct. #4565

SBC (Illinois Bell)
44 S. Vail
St. Louis, MO 63101
Acct. #567-2354

AT&T Broadband XXXXX
Waukegan, IL 60085
Acct. #56-435

Widgets ‘R Us XXXXX
Chicago, IL 60606
Cust. #45643

Smith Fasteners XXXXX
New York, NY 10523
Cust. #L90-9883

Martha’s Cleaning Service XXXXX
Littletown, IL 66666

Motors for Tots, Inc. XXXXX
Omaha, NE 43523
Acct. #43-2M

Billy, Boyd & Braun LLP XXXXX
Los Angeles, CA 89077

P.O. Box 1589
Bridgeview, IL 60455
Acct #LT-43

ABC Loan Company (Mortgage) XXXXX
Salt Lake City, UT 43949
Acct #03-55464

Allstate Insurance
453 Main
Bloomington, IL 68584

Hammerstein & Smith LP
543 Financial
Littletown, IL 66666

What are your thoughts?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
The most important thing is to list them in the case.
Generally, only taxes, domestic support obligations,would go on schedule E.
If the item was financed, and has a lien, or a purchase money/non-purchase money lien on an asset, then they would go on schedule D. -loans for furniture, jewelry, appliances, cars, houses are the main one. If there is a judgment and it was recorded against real property, then they would go on D. Check at the debtor's county recorder of deeds office to be sure. Otherwise everything else will go on F. Your list of creditors should all go to F unless they have collateral attached, and then if so, they would go on D. Contracts & Leases are also repeated on Schedule G

Edited by Terry L. on 3/3/2010 at 3:54 AM EST
Customer: replied 7 years ago.
So, if my supervising attorney stated that this was all the info he had for the moment and that I should start putting this petition together. The client will be here tomorrow morning from the given info I've been able to pull together that the the mortgage belongs on D; taxes belong on E; the utilities belong on F and no other creditor will go onto F until I ask the client questions about any liens, judgments etc, and or check with the county recorder of deeds office, right? After my fact finding mission I can retype the docs with the additional info and place the creditors on the appropriate shedule, right?
Expert:  Terry L. replied 7 years ago.
I would put the rest on F, and then confirm with the client about liens, and checking the recorder of deeds. Most likely they would have told you about judgments, so it would be safe to put them on F for now, then you can move them to D as needed.
Sounds like a perfect plan. THanks.
Customer: replied 7 years ago.
Would it be improper or incorrect to leave these other creditors off the schedules, then ask the client the appropriate questions in a questionnaire and then place the creditors on the appropriate schedule based on the information. This will be my first meetinh with the client and I have Schedules a,b,d and e complete. I just need to know if it is imprper to not have them listed on the schedule f until I ask about those other creditors first.
Expert:  Terry L. replied 7 years ago.
They will need to go onto the schedules somewhere before filing, that is your preference. As long as you review them with the client, you should have no problem when you add them on. I would put them on F, then have a list of questions about judgments, liens etc. and you can move them later as necessary.