Schedule A/B lists what the debtor owns. Schedule C lists which of those assets the debtor claims as exempt. Together they decide what the debtor keeps, and errors in either are among the most common reasons for amended filings. This article walks through both from the preparer's side.
Schedule A/B: list everything the debtor owns or has an interest in
The schedule asks about far more than a house and a car. Work through every category with the client, even when the first answer is "no":
- Real estate, including property owned jointly, inherited or held for others.
- Vehicles, boats, motorcycles and trailers.
- Household goods, electronics, clothing, jewelry and collectibles.
- Financial assets: cash, checking and savings accounts, payment apps, cryptocurrency, stocks and bonds.
- Retirement and pension accounts and insurance policies with cash value.
- Money owed to the debtor, including tax refunds, back wages, support and security deposits.
- Claims, such as an injury claim, an inheritance the debtor may receive, or a lawsuit the debtor could bring.
- Business interests and side income sources, including tools and equipment.
An asset left off the schedule is more serious than an asset listed with a modest value. Questions like "has anyone owed you money?" and "do you expect a refund this year?" bring up items clients do not think of as property.
Valuing assets
- Use a source you can name: an estimate from a pricing guide, a bank statement, a recent assessment, a written estimate. A guess with no support invites questions.
- Value what the item would sell for, not what the debtor paid or what it is worth to them.
- Be consistent. A car valued at one number on Schedule A/B and another on the secured-creditor schedule is the kind of inconsistency a trustee notices.
- Where the client cannot say, note it for the attorney instead of making up a figure.
Schedule C: exemptions are the attorney's decision
Exemptions protect certain property up to limits set by law. Which exemption system is available, and which exemptions apply, depends on the debtor's state and circumstances. Selecting them is part of the legal strategy, and that belongs to the attorney.
The preparer's job is to make that decision easy:
- Flag the asset, its value and the amount of any lien, so equity is clear.
- Note how long the debtor has lived in the state, because residency can affect which exemptions are available.
- Prepare the schedule according to the attorney's instructions, not the software's default selections.
- List assets that look close to the limit, or that raise a question, for the attorney to consider.
Software can suggest exemptions automatically. Treat those as a starting point for the attorney, and make sure each entry on the final Schedule C is one the attorney has approved. For the underlying rules on supervision, see what non-attorney assistants may and may not do.
Common mistakes
- Leaving off small accounts, payment apps or a pending refund.
- Listing a vehicle or home without checking the loan balance, which hides whether there is equity.
- Selecting the software default exemption without attorney review.
- Values that do not match between schedules.
- Ignoring a pending claim or an expected inheritance.
Our guide to common petition errors covers more of these. When the whole file is built on good intake, these schedules are easier; see a Chapter 7 workflow for the steps that lead up to them.
Build the skill
Accurate schedules are what attorneys look for in an assistant. NAVBA offers certification to show that skill, and every membership includes a listing in the directory where attorneys search. Join NAVBA to get started.
This article is general information about bankruptcy practice, not legal advice. Local rules, trustee preferences and state law vary, so confirm current requirements for your jurisdiction.
