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Schedule C in bankruptcy

Individuals filing for bankruptcy will be able to use a Schedule C to list properties being claimed as exempt. Some states allow usage of federal exemptions and some do not. Uncertainty of how to properly fill out a Schedule C form often lead to questions like the ones answered below.

What is a Schedule C in bankruptcy?

Schedule C in bankruptcy is a form to list property claimed as exempt. A Schedule C specifically refers to properties listed on Schedule A or Schedule B. It does not refer to any income. If there is a property that has no equity then there would be no reason to claim it on a Schedule C.

I filed Chapter 7 bankruptcy. I have now received life insurance proceeds which went directly to the bankruptcy trustee. How long will it take to receive any monies left over from the proceeds?

It should take around 90 days for you to receive anything left over after paying your creditors. It takes around a month for to notify the creditors to file proofs of claim. They are given 30 days to file the proofs of claim. Then it takes another month for the trustee to figure out how much the creditors will get. What is left over will go to you. Creditors are entitled to add interest and the trustee get 10%.

Your attorney can also file an amended Schedule C to include the life insurance proceeds. The trustee will then have to send the entire amount back to you as it would no longer be able to be used to pay your creditors.

How could someone amend a Schedule C if it was submitted incorrectly at the time of the initial bankruptcy?

You would begin by filling out the same Schedule C form that you filled out when you filed for bankruptcy. You would make the necessary changes to the form. Keep in mind that once you amend the Schedule C form the newly revised form will take the place of the previous form so you want to make sure that you fill it out entirely. Do not just fill it out with the changes. At the top of the form you will write “Amended”.

A copy of the amended Schedule C form will need to be mailed to the Bankruptcy trustee and to the United States Trustee. A copy of the form will need to be filed with the bankruptcy clerk and you will need to keep a copy.

If the total dollar amount on Schedule C is going to change then you will also need to fill out an Amended Summary of Schedules. You will follow the same amending rules as with the Schedule C. And additionally mail and file with the appropriate people.

Having the right information and understanding of a Schedule C in bankruptcy can help when dealing with questions regarding a Schedule C. Experts can help answer questions about Schedule C inclusion or how to fill out an amended Schedule C. Get the answers fast and affordably by asking an Expert online.
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