§ 31.4 — Loan Documents, Security Instruments and Mortgages

Revised: April 1, 2009

[1]

The debtor’s copies of documents evidencing debt are often lost or put away and do not have the same visibility as an automobile loan coupon book, which the debtor handles every month. The debtor must be encouraged to go through drawers and closets to find loan documents and security instruments and bring them to counsel’s office. Debtors typically do not know the terms of their debts. They do not know whether loans are secured, whether security interests are perfected, whether loans are co-signed or the extent of collateral available to a creditor. Counsel must review the debt instruments to complete the schedules accurately. Original loan documents are rarely available from creditors but may be very important during the Chapter 13 case.