Who are Creditors in Bankruptcy?

Anyone filing for bankruptcy in this country will discover that there are many, many forms that need to be filled out. It’s essential that every document be accurate and complete in order for the procedure to go smoothly and efficiently. One important form requires you to identify secured creditors. Who and what is encompassed in that term?

Secured Creditors 

Creditors who have security interests in your property are called secured property. That can include anyone who has established the following:

• Wage garnishment;
• A mortgage agreement;
• A statutory or judgment lien;
• A deed of trust.

Specifically, That Could Include…

Now that we’ve identified secured creditors, let’s break that down to the types of organizations and people it may involve:

• Friends and/or relatives having a security interest or lien on your property;
• Lenders related to vehicles and other property when there is a lien against such property;
• Those with a deed of trust or mortgage on your real estate;
• Unpaid contractors and others who have a lien on your property;
• Anyone who’s won a lawsuit and has a judgment lien against you;
• A former spouse or government agency that has a lien against you due to skipped child support payments;
• Professionals (such as attorneys or physicians) who have a lien against you for a lost lawsuit;
• The IRS or other agencies holding tax liens due to unpaid taxes;
• Attorneys or collection agencies attempting to collect a secured debt.

Unsecured Creditors

When a creditor has no lien or security interest in your property, they are an unsecured creditor.  This could include:

• Anyone to whom you owe money;
• A former spouse if you are named on joint debt;
• Credit card companies;
• Any loans or notes on which you cosigned;
• Anyone else attempting to collect a bill or debt from you.

Unsecured Priority Categories

Secured claims take priority over unsecured claims. There are three categories of priority unsecured claims about which data must be collected:

• Obligations related to domestic support;
• Government debt such as taxes;
• Claims against you related to injuries or death caused by you due to intoxication.

Unsecured Nonpriority Categories 

An additional three categories for nonpriority unsecured claims include:

• Money owed related to education;
• Money owed relating to divorce;
• Money owed to profit-sharing or pension plans.

It’s Complicated

Clearly, there is a lot to know and understand about the bankruptcy process. Have no fear: the experienced Miami bankruptcy attorneys at The Law Office of Julia Kefalinos will guide you every step of the way. Don’t try to go it alone. Bankruptcy is a frustrating and emotional process under the best of circumstances, so avoid being hamstringed by not knowing what to do or how to do it. Schedule a confidential consultation with us in our Miami office today.

Source:

uscourts.gov/sites/default/files/2025-04/instructions-individuals-2025-04v2-instructions.pdf