The type of debt you owe a creditor determines where the debt is listed on the forms and how the creditor is treated in the case.
Priority debt: Is the creditor the government (federal, state, municipal) or your former spouse/partner? If so, the debt you owe them is most likely a priority debt. Common examples of priority debts are taxes, child support, and alimony.
Priority debts are listed in Part 1 of Official Form 106E/F, Schedule E/F.
Unsecured nonpriority debt: These debts are not connected to a piece of property like a secured debt and the creditor is not given priority status by the Bankruptcy Code. Debts who are neither secured debts nor priority debts are unsecured nonpriority debts. Common examples of unsecured nonpriority debts are credit cards, student loans, medical bills, payday loans, and personal loans.
Unsecured nonpriority debts (most debts) are listed in Part 2 of Official Form 106E/F, Schedule E/F.
Secured debt: Can the creditor repossess the items you purchased using this loan if you don’t make payments? That is considered a secured debt. Common examples are car loans, motorcycle loans, and mortgages.
Secured debts are listed in Official Form 106D, Schedule D.
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