Bankruptcy

Scheduled Debts/Secured and Unsecured Creditors: Underwriting Guidelines

All property of the debtor should be considered unmarketable unless sold under court order or abandoned as part of the bankruptcy proceedings. In addition, some debts – be they scheduled or unscheduled – are secured debts (i.e., mortgages, car loans, etc.) while other debts are unsecured (i.e., signature loans or unsecured lines of credit). Whether a debt is secured or unsecured determines whether the entities who extended the credit or made the loans to the debtor are secured creditors or unsecured creditors.