When filling out a bankruptcy petition you will have to list
all creditor claims secured by property as well as the nature of the lien. All
of this information will go on Schedule D (creditors
holding secured claims) of the bankruptcy petition.
Figuring out what type of lien the creditor has can be
tricky in some situations. If you can’t determine the type of lien the creditor
has, consult with the attorney.
Here are the options:
mortgage. You took out a loan to buy your house. (This is a
specific kind of purchase-money security interest.)
security interest. You took out a loan to purchase the property
that secures the loan—for example, a car note. The creditor must have
perfected the security interest by filing or recording it with the
appropriate agency within 20 days. (Fidelity Financial Services, Inc.
v. Fink, 522 U.S. 211 (1998).) Otherwise, the creditor has no lien and
your attorney will list the debt on Schedule F (unsecured debt)
nonpurchase-money security interest. This is what a pawnshop
owner has when you pawn your property.
nonpurchase-money security interest. You borrowed money for a
purpose other than buying the collateral. This includes refinanced home
loans, home equity loans, or loans from finance companies.
lien. This means someone sued you, won a court judgment, and
recorded a lien against your property.
lien. This means a federal, state, or local government agency
recorded a lien against your property for unpaid taxes.
support lien. This means that another parent or government agency
has recorded a lien against your property for unpaid child support.
or material man’s lien. This means someone performed work on your
real property or personal property (for example, a car) but didn’t get
paid, and recorded a lien on that property. Such liens can be an
unpleasant surprise if you paid for the work, but your contractor didn’t
pay a subcontractor who got a lien against your property.
With the training
you will get through 713Training.com, you
will be trained on the proper way to list all secured debts, along with
learning the skills needed to complete a petition that will eventually get
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