How to Complete Schedule B of a Bankruptcy Petition

Schedule B in a bankruptcy petition is the first long form to complete. It's a questionnaire of sorts about your personal property. Be thorough when filling out this form as you'll be using the information again on schedule C which is exemptions.

Entering Information into the Schedule

In this schedule are 4 columns and 35 property descriptions. Read each description closely to make sure you have the proper entry and enter information as asked for in each column.

Columns are labeled as none, description and location of property, husband, wife, joint, or community and current value of debtor's interest in property without deducting any secured claim or exemption. None means you do not own anything of that description. Description and location of property can be the bank the money is held at, a safe deposit box or your current address. Husband, wife, joint or community is if there is another person who has an interest in the real property being listed. The current value of the property is its value at resale with no deductions or exemptions taken out.

Questions One and Two

These deal with your finances at the time of filling out your petition. If you have $25 in your pocket and $256 in your bank account then enter those numbers under the description and location of property column. In the case that you are the sole owner of a bank account, do not enter anything in the husband etc. column.

Questions Three Through Eight

You'll be answering the valuations of household items of value. Furs, jewelry, firearms and household goods. Any security deposits with utilities are also listed. Put in a value even if the item is worn, rusted or moth eaten. Be absolutely honest about items you own. Again, if you have none of these items then put a check mark into the none column.

Questions Nine Through 16

All questions deal with financial situations. If you are a partner in a business venture, you'll need to list the current value of the business, even though there is someone else involved. Any financial instruments that pay interest or dividends will be entered here.

Questions Seventeen Through Twenty-one

What's asked here is what may be thought of as somewhat more obscure forms of income. Alimony and support payments, trusts and inheritances are to be entered here. If you have not filed your taxes for the year by the time of filing, you will have to enter any expected amount.

Questions Twenty-two through Twenty-three

These two questions are for any licenses or patents that bring you revenue.

Question Twenty-four

The opening words "customer lists" may seem strange at first. It only applies to those who use customer lists to find customer for a business purpose.

Questions Twenty-five through Thirty

All recreational vehicles, personal vehicles, office machines and inventory, just to name a few, will have their valuations entered here.

Questions Thirty-one through Thirty-four

You only have to concern yourself with these questions if you own a farm and livestock.

Question Thirty-five

Anything you own that may have a value and wasn't covered by the previous questions will be entered on this line.

Tips For Completing Schedule B

Having a value of every thing that is listed beforehand will make filling out this schedule easier. If you run out of room on the schedule itself, add additional pages with the number of the question you are responding to as a header. You can attach the additional sheets behind the third page of the schedule.

If you find this is more than you're able to handle by your own, consult with a lawyer at the very least. Bankruptcy is a complicated process, requiring hours of work to fill out the petition. A bankruptcy lawyer will be able to shoulder some of the burden for you.

Personal Property Categories

There are 35 categories under which you may list your property. These categories include items such as the amount of cash you have on hand, the amount you have in checking, savings and other financial accounts. You will also be required to list items like apparel, furs and jewelry, firearms and hobby equipment, and provide an approximate fair market value of each item. You will also need to know your interest in IRA, ERISA, Keogh and other pension or profit sharing programs, as well as that of stocks, bonds, and annuities. Any income received through alimony, support or property settlements, other liquidated debts which are owed to you, including any tax refunds to which you are entitled. You will be required to list, along with their approximated values any patents, copyrights, automobiles, boats, airplanes, machinery, animals, crops, and any other personal property not expressly mentioned on the Schedule B form. 

If someone else is holding property for you, their name and address will need to be noted under “Description and Location of Property.”

Calculating Fair Market Value

When completing the Schedule B form you will be required to accurately calculate the fair market value of the property you include. Fair market value, (FMV) is subjective and difficult to accurately determine. When doing so, don’t fall prey to undervaluing items as this can potentially make you guilty of a federal crime. You may even wish to consult with an expert on bankruptcy law to ensure that your calculations will not meet with resistance during any part of the proceedings.  When calculating on your own research the FMV by comparing the price of similar items, and be sure to compare with items from where you reside. This is particularly true with real estate, compare values with recent purchases in your specific area.