Schedule E Form

Is the Claim Subject to Offset? A claim is subject to offset if you owe the creditor, but the creditor also owes you money. A common offset claim arises when you owe money to Big Bank and you have a checking account there. Because Big Bank is holding your money, Big Bank owes that money to you.

Priority debts include: Council Tax.Income Tax, National Insurance and VAT. mortgage, rent and any loans secured against your home. hire purchase agreements, if what you're buying with them is essential.

A. Setoff is an equitable right of a creditor to deduct a debt it owes to the debtor from a claim it has against the debtor arising out of a separate transaction. Recoupment differs in that the opposing claims must arise from the same transaction.

An unsecured claim is a debt that is not secured by property (debts secured by property include your mortgage or car loan). Priority unsecured debtssuch as unpaid taxes and family support arrearagesget special treatment and are paid before nonpriority unsecured debtssuch as credit card debt and medical bills.

Is the claim subject to Offset? Asks if you have to pay back the whole debt. For example, if you owe the creditor $1,000 but the creditor owes you $200, then the claim can be offset.

Examples of nonpriority, unsecured debts include credit card debt, medical debt, personal loans, student loans, utility service arrearages, judgments from lawsuits, and the like.

An unsecured claim is a payment request made to the bankruptcy court by a creditor who doesn't have the right to sell property to satisfy the underlying debt. Credit card companies, medical providers, and utility companies often file unsecured claims.

Priority unsecured debts are non-dischargeable, which means that any amounts that do not get paid in your bankruptcy are still outstanding. Bankruptcy does not wipe out your obligation on priority unsecured debts unless they are paid in full through the case.