Q: Are garnishments considered secure debts in a chapter 7?On schedule F how do I list debts that have gone to collection?
A: Not necessarily. Garnishment can be result of an unsecured creditor (such as credit card account) having filed a lawsuit and obtained a judgment. You would list the original creditor information on schedule F, then list any collection agencies on the Creditor's Matrix. If you have been sued in the 12 months prior to filing your bankrupcy case you should also include information about the lawsuit in the form called "Statement of Financial Affairs". The reason for putting the original creditor on Schedule F and putting the collection agency or agencies on creditor's matrix is that both will receive notice, but only one should be counted toward your total debt on schedule F. As you may know, collection agencies can change over time, so you want to include the original creditor on schedule F. Whoever takes over the collection of this account will be subject to the discharge based on receiving a discharge as to the original debt.
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