§ 36.12     Schedule E—Priority Claims
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 36.12, at ¶ ____, LundinOnChapter13.com (last visited __________).
[1]

Schedule E to Official Bankruptcy Form 6 is a list of unsecured priority claims that must be paid in full in a Chapter 13 case.1 Names, addresses and the last four digits of any account number are required by the official form. The debtor can choose to list the entire account number. After amendments to § 342 by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA),2 there may be good reasons to list the entire account number for each debt on Schedule E.3

[2]

Wages owed to employees by a debtor engaged in business and taxes and penalties owing to federal and state governments must be listed in Schedule E. Counsel should pay special attention to tax obligations, itemizing each by type of tax and by taxing authority. The amounts of some claims entitled to priority adjusted on April 1, 2007, and will adjust automatically every three years thereafter.4 The date the priority claim was incurred should be listed to assist in determining whether the tax is entitled to priority under 11 U.S.C. § 507.5 If the unsecured priority claim is contingent or unliquidated, such should be indicated on Schedule E. Contingent or unliquidated priority claims are not counted toward the eligibility limitations.6 The “disputed” column on Schedule E is not useful in a Chapter 13 case.7

[3]

The list of unsecured priority claims in Schedule E to Official Bankruptcy Form 6 has added significance in Chapter 13 cases after amendments by the Bankruptcy Reform Act of 1994 and further amendments by BAPCPA. Section 304 of the 1994 Act created a new priority in § 507(a)(7) for “allowed claims for debts to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child.”8 The description and location of this priority was changed by the 2005 Act. BAPCPA coined a new term of art, “domestic support obligations,” defined in § 101(14A). BAPCPA elevated domestic support obligations to the first priority in § 507(a)(1).9 In Chapter 13 cases filed after October 17, 2005, Schedule E includes all unsecured debts for domestic support obligations that qualify for the new priority in § 507(a)(1).

[4]

Unsecured, noncontingent, liquidated support claims listed as priority claims in Schedule E are counted toward the unsecured debt limitation in § 109(e).10 Such claims must be paid in full to accomplish confirmation of a Chapter 13 plan.11

[5]

Consistent with the other priorities in § 507(a), the new priority for domestic support obligations is for unsecured debts only. Prior to BAPCPA, the § 507(a)(7) priority for alimony, maintenance, or support was not limited to unsecured debts.12

[6]

In December of 2007, the Judicial Conference promulgated a new Schedule E to Official Bankruptcy Form 6 that reflects the 2005 amendments by including a check box for whether the debtor has any domestic support obligations described in § 507(a)(1). If so, the claim must be described in Schedule E.


 

1  See §§ 98.1 [ Plan Must Provide Full Payment ] § 73.1  Plan Must Provide Full Payment100.5 [ Filing Fees ] § 73.10  Filing Fees, 291.1 [ Treatment of Priority Claims ] § 136.1  Treatment of Priority Claims301.1 [ Alimony, Maintenance and Support in Cases Filed after October 22, 1994 ] § 136.20  Alimony, Maintenance and Support in Cases Filed after October 22, 1994, and 440.1 [ New and Changed Priority Claims ] § 73.3  Priority Claims Added or Changed by BAPCPA443.1 [ Filing Fees ] § 73.11  Filing Fees after BAPCPA.

 

2  Pub. L. No. 109-8, 119 Stat. 23 (2005).

 

3  See 11 U.S.C. § 342, discussed in §§ 35.5 [ Schedule D—Secured Claims ] § 36.11  Schedule D—Secured Claims and 365.1 [ Section 342: Notice in Chapter 13 Cases after BAPCPA ] § 4.3  Section 342: Notice What Didn’t Happen.

 

4  See 11 U.S.C. § 104.

 

5  See § 292.1 [ Taxes ] § 136.2  Taxes before BAPCPA.

 

6  See § 17.2 [ Taxes and Other Priority Claims ] § 17.2  Taxes and Other Priority Claims.

 

7  See § 17.1 [ Disputed Debts ] § 17.1  Disputed Debts.

 

8  11 U.S.C. § 507(a)(7), as amended by Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, §  304, 108 Stat. 4106 (1994). See §§ 99.1 [ What Claims Are Priority Claims? ] § 73.2  What Claims Are Priority Claims? and 301.1 [ Alimony, Maintenance and Support in Cases Filed after October 22, 1994 ] § 136.20  Alimony, Maintenance and Support in Cases Filed after October 22, 1994 for discussion of this priority claim.

 

9  11 U.S.C. § 507(a)(1), as amended by Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (2005). See § 73.3  Priority Claims Added or Changed by BAPCPA, § 88.5  Domestic Support Obligations Assigned or Payable to Government: § 1322(a)(4) after BAPCPA and § 136.21  Domestic Support Obligations after BAPCPA for discussion of this new priority claim.

 

10  See § 17.2 [ Taxes and Other Priority Claims ] § 17.2  Taxes and Other Priority Claims.

 

11  See §§ 98.1 [ Plan Must Provide Full Payment ] § 73.1  Plan Must Provide Full Payment, 291.1 [ Treatment of Priority Claims ] § 136.1  Treatment of Priority Claims and 498.1 [ Domestic Support Obligations Must Be Current ] § 113.3  Domestic Support Obligations Must Be Current.

 

12  See §§ 100.3 [ Secured Priority Claims? ] § 73.7  Secured Priority Claims? and 300.1 [ Secured Priority Claims? ] § 136.18  Secured Priority Claims before BAPCPA.